S.C : Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no income accrued to the assessee under s. 41(2) of the IT Act, in the asst. yr. 1979-71 ?

Supreme Court Of India

Central India Electric Supply Company vs. CIT

Sections 41(2), 147(a)

Asst. Year 1970-71

S.P. Bharucha, Syed Shah Mohammed Quadri & N. Santosh Hegde, JJ.

Civil Appeal No. 14561 of 1996

2nd August, 2000 

ORDER

BY THE COURT :

We have heard learned counsel for the appellant, read the judgment of the High Court under appeal and the judgment of the Tribunal, which the High Court reversed. We are of the view, having regard to the facts and circumstances of the case, that the High Court was right in answering the following two questions in the negative and in favour of the Revenue :

“(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no income accrued to the assessee under s. 41(2) of the IT Act, in the asst. yr. 1979-71 ?”

(2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the ITO was not justified in reopening the assessment for the asst. yr. 1970-71 under s. 147 (a) of the IT Act ?”

The High Court was right in coming to the conclusion that the parameters of s. 147(a) of the IT Act were satisfied for the purposes of reopening the assessment for the asst. yr. 1970-71.

It was also justified in coming to the conclusion that income had accrued to the assessee under s. 41(2) of the Act in the asst. yr. 1970-71. It is clear from the facts that the dispute before the District Judge, the High Court and this Court, in regard to the umpires’ award, made a rule of the Court, was restricted to an amount of Rs. 60,000 and to interest. Therefore, the balance of the amount awarded became due to the appellant when the award was made a rule of the Court within the previous year relevant to asst. yr. 1970-71.

The appeal is dismissed with costs.

[Citation : 247 ITR 54]

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