R.K. Agrawal, J. - (1.) Both the appeals filed under Section 260A of the IT Act, 1961 (hereinafter referred to as the 'Act') by U.P. Bhumi Sudhar Nigam, Lucknow (hereinafter referred to as the 'Nigam') raise common substantial question of law.
(2.) Income-tax Appeal No. 3 of 1999 relates to the asst. yr. 1995-96 whereas IT Appeal No. 4 of 1999 relates to the asst. yr. 1994-95. In both the appeals the following substantial questions of law with the difference in the figure of receipts have been raised : "(i) Whether the Tribunal was legally correct in holding that the appellant-company is not the 'Government' and its income, therefore, was not outside the provisions of IT Act ? (ii) Whether, on the due consideration of the true nature of receipts amounting to Rs. 47,23,315 and the attendant facts and circumstances of the case, the Tribunal was legally correct in affirming taxability thereof, as income, in the case of assessee ? (iii) Whether there was any material for the Tribunal to come to the conclusion that interest received in relation to the funds which got deployed with scheduled/nationalised banks remained lying with the appellant-Nigam, and there was no diversion of the same, at the very source, in favour of the State Government ? (iv) Whether the findings about the taxability of receipts amounting to Rs. 47,23,315 are not vitiated in law as having been arrived at without giving due consideration of the relevant materials/information, particularly to the effect that-( a) the amount in question stood credited in a separate account classified as 'interest payable to Government'; (b) the State Government never gave up its claim for the said sum; (c) the Nigam at its part had already taken effective steps for making over the said sum as stood comprised in the overall credit balance under the head 'Interest payable to State Government' with such governance; and (d) other relevant/attendant facts and circumstances of the case. (v) Whether the Tribunal was legally correct in not accepting the alternative plea of the appellant, that it carried corresponding liability towards the State Government, which in any case was liable to be allowed, as a sequel to the sustenance of addition of Rs. 47,23,315 ? (vi) Whether the Tribunal was legally correct in holding that the amount in question did not partake the character of grants-in-aid given by the State Government, and the same was straightaway taxable in the hands of the appellant ?"
(3.) In the asst. yr. 1995-96, the amount is Rs. 47,23,315 whereas in the asst. yr. 1994-95, the amount is Rs. 71,96,225.;