COMMISSIONER OF INCOME TAX Vs. UNITED BREWERIES LIMITED

JUDGEMENT

(1.) The revenue is in appeal questioning the correctness and legality of the orders passed by the Income tax Appellate Tribunal, Bangalore Bench, in ITA No. 296/Bang/1998 and ITA No. 315/Bang/1998 for the assessment years 1993-94. The assessee filed return of Income for the assessment year 1993-94 on 31-12-1993 declaring a total income of Rs. 2,58,86,442/-. The return of income was processed under Section 143(1)(a) of the Income Tax Act 1961 (hereinafter referred to as the Act for short). Notice under Section 1423(1) of the Act was issued to the assessee. The Commissioner of Income Tax Act (appeals) by his order dated 29-11-1994 has set aside the intimation issued under Section 143(1)(a) of the Act. Thereafterwards assessee filed a revised return on 31-3-1995. On seeking queries from the assessee, the assessee has once again filed the revised return on income on 28-3-1996 declaring a business income of Rs. 3,22,34,068/- and long term capital gains of Rs. 10,25,005/- as against the business income of Rs. 2,76,88,348/- and short term capital loss of Rs. 9,47,411/-. On the basis of the same and after hearing the assessee an order of assessment came to be passed. The Assessing Officer by his order dated 29-3-1996 made the following additions:

(2.) The assessee being aggrieved by the same filed an appeal before CIT (Appeals) in ITA 76/CC-11/CIT(A)/96-97. The Appellate Authority by order dated 26-2-1998 was pleased to set aside to disallowance made on account of non competition fee of Rs. 4.30 crores and remitted the matter back for fresh consideration to the Assessing Officer and confirmed the order of Assessing Officer on other three issues.

(3.) The assessee being aggrieved by the order of remand passed by CIT (Appeals) dated 26-2-1998 regarding remanding of the matter to Assessing Officer filed further appeal before the Income Tax Appellate Tribunal in ITA 297/Bang/1998. The assessee also filed an appeal in ITA No. 296/Bang/1998 against the assessment order dated 26-2-1998 of CIT Appeals against the confirmation of Assessment order. The said appeal came to be allowed by the Tribunal against which the revenue is in appeal in ITA 142/2001 by raising the substantial questions of Law.