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TMI Blog1984 (12) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Officer included a sum of Rs. 58,476 as profits under section 41(2) of the Income-tax Act, 1961, without assigning any reason for the same. The Income-tax Officer also included a further sum of Rs. 67,012 as profits under the said section 41(2) arising out of the sale of the assets of Belvedere jute Mills Co. Ltd. which were not used in the business of the assessee. On an appeal preferred by the assessee against the assessment, the Appellate Assistant Commissioner found that depreciation had been allowed by the Income-tax Officer in respect of the assets of Belvedere jute Mills Co. Ltd. at their written down value and not on the basis of their actual cost. Following the decision in the case of the assessee in a subsequent assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing out of its order for our opinion: " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that for calculating the profits under section 41(2) of the Income-tax Act, 1961, the written down value arrived at on the basis of book value should be adopted? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 67,012 could be taxed as capital gain and not as profit under section 41(2) of the Act ? " At the hearing, a decision of this court in CIT v. Delta jute Mills Co. Ltd. [1979] 117 ITR 492, was cited at the Bar. In that case, the decision of the Tribunal in the case of the same assessee in the subsequent assessment year 1967-68 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter to the Tribunal. The Tribunal is directed to decide the matter afresh in the light of the provisions contained in section 43 as it stood in the assessment year in question. In deciding the matter, the Tribunal is directed further to keep in view the principles laid down by this court in Riverside (Bhatpara) Electric Supply Co. Ltd. v. CIT [1977] 109 ITR 399, as also the decision of this court in the case of the assessee for the subsequent year referred to hereinabove. So far as the second question is concerned, there is no dispute that the assets of Belvedere jute Mills Co. Ltd. came to be the assets of the assessee after amalgamation. Some of such assets, in particular, machinery, were sold by the assessee. If the amount received fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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