COMMISSIONER OF INCOME TAX Vs. ELOOR CONSTRUCTIONS

JUDGEMENT

(1.) THE Department has approached this court by this petition praying for a direction under Section 256(2) of the Income-tax Act, 1961, for reference of the following as many as seven questions :

(2.) IT must be stated at the outset that reading the text of all these questions, they relate to the factual context with regard to the matrix which could be really narrowed down and also shortened in view of the decision of the apex court in CIT v. Govinda Choudhury and Sons [1993] 203 ITR 881.

(3.) THEN came a revised return dated February 19, 1987, showing Rs. 3,56,250 as profit on contract receipts of Rs. 31,50,305. This was along with a covering letter specifying admissions in regard to the original return including a sum of Rs. 9,94,239 from the work of Idukki Hydro Electric Power Cement Concrete Lining Project referring a sum of Rs. 19,94,23,9 stating in regard thereto that the said amount was deposited by the Electricity Board in pursuance of the arbitration award in regard thereto. In regard to this revised return, the income admitted was accepted in an assessment under Section 143(3) of the Act by an order dated March 30, 1987. It is observed that with regard to Rs. 5,48,167 assessment had escaped and in regard thereto a notice under Section 148 of the Act was issued.