COMMISSIONER OF INCOME TAX Vs. GOODYEAR INDIA LTD.

JUDGEMENT

(1.) IN these five appeals under s. 260A of the IT Act, 1961, pertaining to assessment years beginning from 1972 -73 onwards, the following substantial question of law arises for consideration :

(2.) SOME investigations were conducted by the Securities and Exchange Commission ('SEC' for short) in America in respect of the parent company of the assessee that is M/s Goodyear Tyre & Rubber Co., USA. The SEC appears to have filed a complaint in USA in the District Court of Columbia. It transpires that it was discovered during the investigation that the assessee had provided amounts upto 8 lakh US dollars in India for unlawful purposes such as payments to Government officials etc. This amount was not shown in the books of account of the assessee.

(3.) AS a result of the disclosure made available from the investigation carried out in USA, the assessee sent two letters to desire to protract the litigation and some reasonable amount may be added by the IT authorities by spreading over the same in the relevant assessment years and taxed accordingly. It was also stated that penalty proceedings may not be launched against the assessee.