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TMI Blog2001 (8) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the Tribunal was right in sustaining the addition of Rs.26,000 as income of the assessee under section 2(24)(iv) of the Act?" For the assessment years 1978-79 and 1980-81: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the income of Rs.24,750 and Rs.5,000 were assessable under the provisions of sections 2(24)(iv) and 17(2)(iii) in the assessment years 1978-79 and 1980-81, respectively?" The dispute relates to the assessment years 1978-79, 1979-80 and 1980-81. The factual position in a nutshell is as follows: The assessee was one of the directors of the National Chemical Industries Ltd., New Delhi. His account in the books of account maintained by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly if not expressly, the approval of the company to the waiver of interest. Accordingly, it was held that the amount in question was rightly brought to tax by the Assessing Officer as income of the assessee. On being moved for reference, the questions as set out above have been referred for the opinion of this court. We have heard learned counsel for the Revenue. There is no appearance on behalf of the assessee in spite of notice. The apex court had an occasion to consider a similar question in V. M. Salgaocar and Bros. Pvt. Ltd. v. CIT [2000] 243 ITR 383. It was, inter alia, held as follows: "Sections 17(2) and 40A of the Income-tax Act, 196l, were amended by the Taxation Laws (Amendment) Act, 1984. Sub-clause (vi) of clause (2) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esaid provision with effect from the date of its proposed insertion, namely, April 1, 1985. The Central Board of Direct Taxes issued a circular dated June 12, 1985, incorporating the objectives sought to be achieved by omission of clause (vi). Earlier, the Central Board of Direct Taxes had issued a circular explaining the objectives in inserting clause (vi). By the 1984 Amendment Act, Parliament wanted to carve out a particular exception from the otherwise exclusionary clauses for the purposes of computation of income-tax. This provides a clear direction to interpret the provisions of sections 17(2) and 40A(5) before insertion of clause (vi). The circulars of the Central Board of Direct Taxes also provide as to how the Revenue itself unders ..... X X X X Extracts X X X X X X X X Extracts X X X X
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