INDIA CARBON LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Petitioner, who was the Appellant in Income Tax Appeal No. 13/2000, seeks a review of the order dated 1. 4. 2004 passed in the said Appeal by which order this Court had refused to go into the questions framed by holding the same to be not necessary and accordingly disposed of the Appeal.

(2.) THE facts, which will be necessary to be noticed for an effective adjudication of the questions arising in the Review Petition, may be stated at the outset : the assessment of the petitioner to income tax for the assessment year 1993-94 was finalized on 10. 1. 1996. For the previous year ending on 31. 3. 1993, the petitioner had collected Central Sales Tax amounting to Rs. 53,82,059. Though collected, the said amount was not paid into the State Exchequer. The petitioner did not include the amount in its trading as well as in the profit and loss account. The Assessing Officer, in the said facts, treated the amount in question as a part of the trading receipt of the petitioner during the financial year in question. Thereafter, the Assessing Officer held that as the amount in question was not deposited, the petitioner would not be entitled to the benefit of deduction of the said amount under Section 43 B of the Income Tax Act (hereinafter referred to as the Act ). Accordingly, the amount in question was included in the income of the petitioner. The petitioner filed an appeal before the Commissioner of Income Tax (Appeals) contending that it had not claimed deduction of the amount in question under Section 43 B of the Act. The Commissioner of Income Tax (Appeals) upheld the claim of the petitioner and ordered for deletion of the amount of Rs. 53,82,059/ -. Aggrieved, the Revenue filed a further appeal to the Appellate Tribunal. The learned Tribunal by its order dated 25. 9. 2000 took the view that the Assessing Officer had not made the addition by disallowing the Central Sales Tax collected under Section 43b of the Act but that the addition in question was made by treating the amount in question as a part of the trading receipt of the assessee for the relevant assessment year. Accordingly, the order of the Commissioner (Appeals) was reversed.

(3.) AGGRIEVED by the aforesaid order dated 25. 9. 2000, the petitioner filed the appeal in question before this Court under Section 260a of the Act. The following questions were framed by the Court by its order dated 19. 5. 2001 admitting the appeal.