Ajit K.Sengupta, J. - (1.) This reference under Section 256(2) of the Income-tax Act, 1961, relates to the assessment year 1980-81. Shortly stated, the facts are that, during the accounting year relevant to the assessment year 1980-81, the assessee-company was to receive Rs. 2,59,516 being professional fees from India Malaysia Textiles, Berhad (a foreign company). By a resolution dated April 18, 1978, the assessee had purportedly forgone the said fees from the said foreign company due to continuous financial crisis of the company and at the instance of IMTB and foreign financial institutions. The amount as such was not taken as profit by the assessee for the year. In the Notes appearing at Schedule 'F' in item No. 40(a) submitted by the assessee, it showed that such action of writing off the claim required the permission of the Reserve Bank of India. The assessee in this case did not obtain any such permission from the Reserve Bank of India. In view of this fact, the Income-tax Officer did not entertain the assessee's claim and added the sum to the income of the assessee.
(2.) Against such addition, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) who held that the question of taking permission from the Reserve Bank of India for writing off the professional fees receivable from the foreign company could not be a bar against allowance of the assessce's claim. He, therefore, directed the Income-tax Officer not to include the above-mentioned amount in the total income for the year under reference.
(3.) On appeal by the Department, the Tribunal upheld the finding of the Commissioner of Income-tax (Appeals) following the decision of the Tribunal in the assessee's own case in I. T. A. Nos. 1841 to 1844/(Cal) of 1983.;