CIT Vs. DALMIA DAIRY INDUSTRIES LTD

JUDGEMENT

(1.) THE captioned reference has been preferred at the behest of the Revenue. THE reference pertains to assessment year 1977-78 relevant for previous year ending on 30.09.1976. THE Income Tax Appellate Tribunal (hereinafter referred to as ,,Tribunal) by order dated 20.05.1994 has referred to us for adjudication the following question of law: 'Whether on the facts and in the circumstances of the case, the Tribunal is right in holding that surplus of Rs 58,32,100/- is not taxable in the assessee's total income?

(2.) THE brief facts, in so far as they are relevant for adjudication of the aforementioned question, which are required to be noted (as gleaned from the orders passed by the authorities below), are as follows: THE assessee entered into an agreement dated 24.07.1962 (hereinafter referred to as ,,Agreement) with one Mr E. Manekji of Karachi, Pakistan for sale of its two cement factories located at Karachi and at Dandot, Distt. Jhelum. THE agreement envisaged that the purchaser, i.e., Mr Manekji would make the payment in cash or kind or both according to the procedure laid down.

(3.) HAVING heard the learned counsel for the parties and perused the record what emerges from the record is as follows: