UCO BANK CALCUTTA Vs. COMMISSIONER OF INCOME TAX WEST BENGAL

JUDGEMENT

(1.) Civil Appeal No. 235 of 1996

(2.) The Income-tax department completed the assessment for assessment year 1981-82 on 28th of February, 1985, by following the Central Board of Direct Taxes Circular No. F. 201/21/84 TTA-II dated 9th of October, 1984 excluding from the total income of the assessee, the said sum of Rs. 49,15,435. 00 while computing the total income of the assessee. The Commissioner of Income-tax on examination of the assessment records considered the exclusion of the said sum of Rs. 49,15,435. 00 to be erroneous and prejudicial to the interest of the revenue. By his order dated 5th of March, 1987 he included the said amount in the total income of the assessee. On appeal, the Income-tax Appellate Tribunal, by its order dated 14-10-1988, allowed the appeal of the assessee. A reference was made to the High Court at the instance of the revenue under Section 256 (1) of the Income-tax Act. The following question was referred to the High Court:

(3.) The High Court has answered the reference in favour of the revenue in view of the decision of this Court in State Bank of Travancore v. Commr. of Income-tax Kerala, (1986) 158 ITR 102 : (AIR 1986 SC 757 : 1986 Tax LR 521).