9911796707
TMI Blog2000 (3) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioned its business during the relevant assessment year. Along with the return, a note was filed to the effect that during the said assessment year the respondent-assessee had received a sum of Rs.5.50 crores from the Government of Gujarat and from the Gujarat Electricity Board as an advance towards the share capital and as the said amount was not required by the respondentcompany immediately, the respondent-company had deposited the same with a scheduled bank in short-term deposit and the company had earned Rs.1,90,299 by way of interest. It was further stated that the said amount of interest which was received was not a revenue income as the company had not commenced business during the relevant assessment year and, therefore, the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been aggrieved by the said order passed in appeal and therefore has approached this court with a prayer that the appeal be admitted and be heard on the question referred to hereinabove. We have heard the learned advocate, Shri Naik, appearing for the appellant. It has been submitted by the learned advocate, Shri Naik, appearing for the appellant, that, in the instant case, the Tribunal had clearly erred by allowing the appeal for the reason that the Supreme Court had decided in CIT v. Bokaro Steel Ltd. [1999] 236 ITR 315 that whenever any amount in the nature of revenue is received by a company before it commences its business, the income so earned cannot be treated as a capital receipt but it would be treated as an income of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has been reproduced at page No. 16 of the paper book. It has further been submitted by him that, at the time of filing of the return, the assessee is supposed to file his return as per the law prevailing at the relevant time. It has been submitted that at the time of filing of the return the respondent-assessee had no benefit of knowing the legal position which was pronounced by the Supreme Court at a subsequent point of time after the return had been filed and the assessee cannot be expected to know the law which is to be pronounced by the Supreme Court or any other court in future and in the circumstances the action of the respondent-authority under the provisions of section 143(1)(a) was not called for. He has relied upon the judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m for deduction, allowance or relief in cases where the claim is made on the basis of a decision of any High Court, the Appellate Tribunal or other appellate authority, even though a contrary view in the matter may have been expressed by another High Court or another Bench of the Tribunal or any other appellate authority. In the instant case according to him the view expressed by the Andhra Pradesh High Court which has been referred to hereinabove was clearly in favour of the assessee and, therefore, the assessee was entitled to claim the said benefit. He has thereafter referred to a Circular No. 689, dated August 24, 1994, issued by the Central Board of Direct Taxes giving guidelines with regard to disallowance of the claims made by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He has similarly relied on CIT v. Hindustan Electrographite Ltd. [1998] 229 ITR 16 (MP); Gujarat Poly-AVX Electronics Ltd. v. Deputy CIT (Assessment) [1996] 222 ITR 140 (Guj) and S. M. Trivedi v. Addl. CIT [1981] 130 ITR 73 (MP). The sum and substance of the judgments cited by the learned advocate, Shri J. P. Shah, is that the Assessing Officer and the income-tax authorities have to consider the law which was prevailing at the time when the return was filed. Any subsequent amendment in the law or any pronouncement of law made subsequent to the filing of the return cannot be considered for the purpose of initiation of proceedings under the provisions of section 143(1)(a) of the Act. We have carefully gone through the judgment cited by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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