COMMISSIONER OF INCOME TAX Vs. ARUNACHAL PRADESH FOREST CORPORATION LIMITED

JUDGEMENT

(1.) THE following question has been referred under Section 256(1) of the Income-tax Act, 1961, by the Commissioner of Income-tax, North Eastern Region, Shillong, at the instance of the Revenue :

(2.) WE have heard Shri D. K, Talukdar for the Revenue and Shri A. K. Saraf, for the respondent, M/s. Arunachal Pradesh Forest Corporation Ltd.

(3.) ACCORDING to the Income-tax Officer, the Corporation had transferred the entire amount of Rs. 30,18,550.67 to the Government. The Corporation took the stand that this was done by mistake. The Income-tax Officer held that the Corporation would be entitled to 15 per cent. of the gross receipts of Rs. 30,18,550.67 minus operational cost incurred during the assessment year. However, the Appellate Assistant Commissioner and the Income-tax Tribunal took the view that the kist money due till December 15, 1977, under the old transactions entered into by the State Government belonged to the State Government and that the Corporation had no right over it and that the Corporation's right is restricted to a percentage of the receipt of the kist money falling due only after December 15, 1977. Therefore, these authorities held that no percentage of Rs. 24,02,920.43 can be regarded as income of the Corporation for the assessment year 1978-79.