COMMISSIONER OF INCOME TAX BHOPAL Vs. HINDUSTAN ELECTOR GRAPHITES LTD

JUDGEMENT

(1.) The question of law which falls for consideration is :

(2.) Respondent, the assessee, filed its return of income for the assessment year 1989-90. The return was filed on December 29, 1989. It was filed under Section 139 of the Income-tax Act, 1961 (for short, the 'Act').

(3.) Under Section 28 of the Act, income mentioned therein is chargeable to income-tax under the head "profits and gains of business or profession". Clause (iii)(b) in Section 28 was inserted by the Finance Act of 1990. Finance Bill which ultimately became the Finance Act received assent of the President of India on May 31, 1990. Clause (iii)(b) was given retrospective operation w.e.f. April 1, 1967. Clause (iii)(b) is as under :