| Case ID |
08fbd01e-be66-4466-8795-c1f3748d0108 |
| Body |
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| Case Number |
IT REFERENCE NO 179 OF 1971 |
| Decision Date |
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| Hearing Date |
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| Decision |
The High Court addressed the question referred by the Income-tax Appellate Tribunal regarding the interpretation of specific sections of the Income-tax Act, 1961. The court concluded that the answer to the question regarding adjustments for contributions paid by customers should be in accordance with a previous decision in CIT v. Bassein Electric Supply Co. Ltd. The court answered the question in the affirmative and in favor of the Revenue, directing the parties to bear their own costs. |
| Summary |
In this case, the Bombay High Court considered a pivotal question related to the Income-tax Act, 1961, specifically focusing on the interpretation of sections 43(1) and 43(6)(b). The court's determination revolved around whether any adjustments should be made concerning contributions made by customers, which had implications for calculating the actual cost or written down value of assets. This case underscores the importance of established judicial precedents in tax law, clarifying how previous rulings influence current interpretations. The decision highlights the ongoing complexities in tax legislation and the need for precise legal interpretations to ensure fair tax assessments. The court ultimately ruled in favor of the Revenue, reinforcing the principle that established judicial interpretations should guide current cases. This ruling is significant for tax practitioners and entities involved in tax compliance, offering clarity on how contributions by customers are treated under the law and the implications for asset valuation. Tax professionals should take note of this case as it sets a precedent for future references regarding similar issues in tax law. |
| Court |
Bombay High Court
|
| Entities Involved |
Income-tax Appellate Tribunal,
Bombay Suburban Electricity Co. Ltd.,
Bombay High Court
|
| Judges |
S.K. DESAI,
D.M. REGE
|
| Lawyers |
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Bombay Suburban Electricity Co. Ltd.
|
| Citations |
1983 SLD 971,
(1983) 142 ITR 298
|
| Other Citations |
CIT v. Bassein Electric Supply Co. Ltd. [1979] 118 ITR 884
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
43(1),
43(6)(b),
256(1)
|