COMMISSIONER OF INCOME TAX Vs. J.L. GUPTA

JUDGEMENT

(1.) THE CIT moved the Tribunal to refer three questions under s. 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act") in ITA No. 3447/Del/1975 -76 for the asst. yr. 1973 -74. The Tribunal referred the following question of law to this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in allowing the assessee's claim that the amount of Rs. 39,039 representing unclaimed liabilities written off was not taxable for the assessment order 1973 - 74 -

(2.) THE Tribunal appears to have decided the reference relying on the decision in the case of J.K. Chemicals Ltd. vs. CIT (1966) 62 ITR 34 (Bom).

(3.) THE learned counsel for the Revenue fairly stated that in view of the decision in case of CIT vs. Sugauli Sugar Works (1999) 152 CTR (SC) 46 : (1999) 236 ITR 518 (SC), the reference is required to be decided in favour of the assessee and against the Revenue. In view of this, we answer the question in favour of the assessee and against the Revenue.