9911796707
TMI Blog1982 (4) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... Sohani, J. By this reference under section 256(1) of the I.T. Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in cancelling the order under section 263 passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould have allowed only such expenses as were attributable to the income under the heads of interest on securities and other sources. The Commissioner, therefore, issued a show-cause notice to the assessee under section 263 of the Act and after taking into consideration the reply filed by the assessee, the Commissioner set aside the order of assessment passed by the ITO and directed him to pass a f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the order passed by the Tribunal, the department sought a reference and it is at the instance of the department that the aforesaid question of law has been referred to this court for its opinion. Having heard learned counsel for the parties, we have come to the conclusion that this reference has to be answered in the negative and in favour of the Revenue. The Commissioner had passed an order u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment securities would be a capital receipt. The Commissioner was right in holding that such income would be income under the head "Income from other sources" and "Interest on securities". The Tribunal relied upon the provisions of section 487 of the Companies Act but those provisions merely lay down that in the case of a voluntary winding up, the company shall, from the commencement of the wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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