| Case ID |
464ab155-c263-4e97-affd-39c84b23f377 |
| Body |
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| Case Number |
IT REFERENCE No. 341 OF 1964 |
| Decision Date |
Nov 18, 1969 |
| Hearing Date |
|
| Decision |
The court held that the amount of Rs. 67,125 credited to the capital reserve account could not be treated as income of the assessee for the relevant assessment year. The Tribunal was correct in concluding that there was no income of the assessee during the calendar year 1950, despite the initial trading receipt assumption from March 1948. The decision favored the assessee, confirming that the amount received was not a business receipt assessable to income-tax for the assessment year 1951-52. |
| Summary |
This case revolves around the interpretation of business income under the Income-tax Act, specifically regarding an amount received by Bijli Cotton Mills (P.) Ltd. as an advanced payment for additional excise duty on yarn. The court examined whether the amount retained could be recognized as income during the assessment year 1951-52. The decision emphasized the timing of receipt and the nature of the transaction, ultimately ruling in favor of the assessee. This case serves as a significant precedent in understanding business income and the conditions under which amounts are taxable. Keywords: Income-tax, business income, excise duty, assessment year, capital reserve, trading receipt. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
V.G. OAK, C.J.,
T.P. MUKERJEE, J.
|
| Lawyers |
Shanti Bhushan,
Dr. R.R. Misra,
C.S. Agarwal,
V.K. Burman
|
| Petitioners |
Commissioner of Income tax
|
| Respondents |
Bijli Cotton Mills (P.) Ltd.
|
| Citations |
1970 SLD 404,
(1970) 76 ITR 625
|
| Other Citations |
Morley v. Tattersall [1939] 7 ITR 316 (CA)
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
28(i),
10(1)
|