COMMISSIONER OF INCOME TAX Vs. DARBHANGA LAHERIASARAI ELECTRIC SUPPLY CORPORATION LIMITED

JUDGEMENT

(1.) THESE are references under Section 256(1) of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act"). THESE references are concluded by two Division Bench decisions of this very assessed reported in [1979] 117 ITR 516 and [1985] 154 ITR 812. In these references, we are concerned with the assessment years 1971-72 and 1972-73. The question referred to us for our opinion is exactly the same as those in the earlier cases, mentioned above, namely :

(2.) IN view of the earlier Division Bench decisions of this court, these references must be answered against the Revenue and in favour of the assessee. We, therefore, hold that the Tribunal was correct in holding that the amount representing the contingency reserve did not form part of the commercial profit and real income of the assessee and was not includible in the total assessable income of the assessee relating to the assessment years 1971-72 and 1972-73. The references are answered accordingly. However, there will be no order as to costs.