SEA MATES INDIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS tax reference case at the instance of the assessee arises out of an order passed by the Tribunal, Cochin Bench in IT Appeal No. 570 (Coch.) of 1989. The relevant assessment year is 1982-83. The following are the questions referred for the opinion of this Court :-

(2.) THE relevant facts are as follows :-

(3.) THE learned standing counsel for the revenue pointed out that as there is no specific finding by the authorities under the Income Tax Act that the assessee is following mercantile system, the assessee cannot be found entitled to the benefit of the dictum laid down by this Court in Abad Fisheries' case (supra) and Baby Marine Exports' case (supra). THE learned standing counsel brought to our notice a decision of this Court in CIT v. Bell Foods (Marine Division), 1991 191 ITR 219, where this Court refused to answer the question whether the purchase tax lability was deducted in the year 1978-79, since there was no finding by the authorities that the assessee was maintaining its account on the mercantile basis. THE matter was, therefore, remanded.