COMMISSIONER OF INCOME TAX CENTRAL Vs. ASSAM OIL COMPANY LTD
LAWS(CAL)-1970-2-12
HIGH COURT OF CALCUTTA
Decided on February 03,1970

COMMISSIONER OF INCOME-TAX (CENTRAL) Appellant
VERSUS
ASSAM OIL COMPANY LTD. Respondents

JUDGEMENT

P.B.Mukharji, Actg. C.J. - (1.) This is an application by the Commissioner of Income-tax under Section 66(3) of the Income-tax Act, 1922, asking for a rule to show cause why the Income-tax Appellate Tribunal, Calcutta, should not be required to treat the reference application as made within the time allowed under Section 66(1) of the Income-tax Act, 1922, after condoning the delay of one day in filing the same on 24th December, 1968.
(2.) The facts giving rise to this application may be briefly stated at the outset. The respondent is the Assam Oil Co. Ltd., Digboi, Assam. For the assessment year in question, the royalties were paid to the Assam Railways to the extent of Rs. 8,54,503 under the lease which was allowed by the Income-tax Officer by his order dated 22nd January, 1963, as revenue expenditure. The Commissioner of Income-tax (Central), being aggrieved, issued a notice to the assessee-company on 14th December, 1964, proposing to take action under Section 33B of the said Income-tax Act. Thereafter, by his order dated 20th January, 1965, the Commissioner, inter alia, held that the royalty of Rs. 8,54,503 debited to the profit and loss account for the year ending 31st December, 1960, and allowed in the assessment year in question by the Income-tax Officer was of a capital nature and ought not to have been allowed by the said officer. Against that order, the assessee preferred an appeal to the Tribunal. The Tribunal by its order dated 14th October, 1968, set aside that order of the Commissioner of Income-tax and allowed the appeal of the respondent-assessee. Therefore, the Commissioner of Income-tax filed a reference application on 24th December, 1968, on the following question of law and in that application the date of service of the relevant order of the Tribunal under Section 33(4) of the Income-tax Act was shown as 26th October, 1968 : " Whether, on the facts and the circumstances of the case and on a proper construction of the deed of lease dated September 6, 1943, the Tribunal was right in holding that the sum of Rs. 8,54,503 paid by the assessee was allowable as a revenue expenditure ? "
(3.) The trouble, so far as this application is concerned, started from time to time.;


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