K G SUBRUMANYAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) the questions referred to us under Section 256(1) of the income tax Act, 1961, ('the act' for short) reads thus:

(2.) though there are two questions ultimately the answer lies in the inter pretation of Section 41(1) of the Act, which reads thus:

(3.) the relevant assessment year is 1975-76. During the said period ending with the accounting years 31-3-1975 the assessee credited a sum of Rs. 2,11,773/- to his capital account out of which a sum of Rs. 1,67,221/- represented the amount received from the excise department which had been earlier paid by the assessee as litre fee pertaining to the assessment year 1970-71 to 1973-74.