S.C : Whether, on the facts and circumstances of the case, the Tribunal was right in law in having upheld in entirety the disallowance of the assessee’s claim of a sum of Rs. 8,00,063 on account of demurrage and wharfage recovered from the assessee by the North Western Railways, merely because a claim against the contractor was pending for arbitration ?

Supreme Court Of India

Punjab Small Industries Corporation Ltd. vs. CIT

Section 256(2)

B.N. Kirpal, U.C. Banerjee & Brijesh Kumar, JJ.

Civil Appeal No. 7353 of 2000, arising out of SLP(C) No. 6378 of 1999

12th December, 2000

ORDER

BY THE COURT :

Special leave granted.

2. After hearing the counsel for the parties, in our opinion, the High Court should have directed the Tribunal to state the case and refer the following question of law to the High Court : “Whether, on the facts and circumstances of the case, the Tribunal was right in law in having upheld in entirety the disallowance of the assessee’s claim of a sum of Rs. 8,00,063 on account of demurrage and wharfage recovered from the assessee by the North Western Railways, merely because a claim against the contractor was pending for arbitration ?”

We, accordingly, allow the appeal and direct the Tribunal to refer the aforesaid question to the High Court.

[Citation : 249 ITR 415]

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