- (1.) The above appeal has been admitted on the following substantial question of law:- 1. Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was correct in law in confirming the action of the Commissioner of Income-tax (Appeals) in directing the Assessing Officer to exclude the 'Nirgam Mulya' from the purchase price for the purpose of computation of the assessee's, income as per the provisions of section 44AC of the Income-tax Act, 1961? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in law in holding that 'Nirgam Mulya' was a part of bid money and did not form part of purchase price for the purpose of section 44AC of the Income-tax Act, 1961? Heard Sri Shambhu Chopra, learned counsel for the Department and Sri Ashish Bansal, learned counsel for the assessee-respondent.
(2.) The dispute relates to the assessment year 1990-91.
(3.) The assessee is a country liquor contractor. The Assessing Officer made assessment under section 143(3) of the Income-tax Act, on a total income of Rs. 21,81,850/-. The Assessing Officer, during assessment proceedings, required the assessee to explain why its income should not be determined in accordance with the provisions of 44AC of the Income-tax Act and why its income should not be computed after including the 'Nirgam Mulya' amounting to Rs. 38,37,683/-.;