9911796707
TMI Blog1997 (3) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... as delivered by A. K. MATHUR C. J.---This is an income-tax reference under section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue and the following questions have been referred by the Tribunal for answer by this court : " 1. Whether, on the facts and in the circumstances of the case, the reserve created by the transfer from sales and not from profit and loss appropriation acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed December 3, 1976. The assessee claimed that the amount of the reserve made out of the sale was not its income, whereas the Assessing Officer held that it was the liability on the assessee. On appeal, the Commissioner of Income-tax (Appeals), following its own order dated September 18, 1986, accepted the claim of the assessee for the years 1979-80 to 1981-82 holding that it was diversion of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years 1986-87 to 1988-89. The assessee did not claim payment of bonus to agricultural staff before the Assessing Officer. However, this claim was made for the first time before the Commissioner of Income-tax (Appeals) by way of additional ground of appeal which was not entertained. It was again raised before the Tribunal. The Tribunal entertained the ground and following the judgment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arate fund to discharge an obligation imposed upon the assessee by the Molasses Control Order. This was not a case of diversion of income, but of application of income. The sum of Rs. 62,200 received by the assessee and credited to the Molasses Storage Fund constituted a trading receipt and was assessable. In view of the decision of this court, it appears that such amount which has been utilised f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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