COMMISSIONER OF INCOME TAX Vs. B AND A PLANTATTIONS AND INDUSTRIES LIMITED

JUDGEMENT

(1.) THIS appeal has been filed by the Revenue under Section 260A of the Income-tax Act, 1961 against the order dated 20.2.2001 passed by the Income-tax Appellate Tribunal, Gauhati Bench, Guwahati in ITA No. 228(Gau) of 1993 for the Assessment year 1989-90.

(2.) THE following are the substantial questions of law :-

(3.) THE Assessing Officer also charged additional tax under Section 143(1A) of the Act on the assessee to the extent of Rs. 3,26,578. THE assessee preferred an appeal before the first appellate authority, i.e., the Commissioner of Income-tax (Appeals), Guwahatl and the appellate authority following the decision of the Apex Court in 73 ITR 53 took the view that the amount of Rs. 12,96,000 had lost its contingent character and became finalised before the finalisation of the account. THE appellate authority therefore held that the amount of Rs. 12,96,000 should be allowed as deduction. Regarding charging of additional tax under Section 143(1A) of the Act, the appellate authority held that there was no justification in charging the same as the income of the assessee was still at a loss after making the adjustment.