COMMISSIONER OF INCOME TAX Vs. SUNDARAM INDUSTRIES LIMITED

JUDGEMENT

(1.) FOUR questions have been referred by the Tribunal. They concern a company, which is engaged in the activity of retreading tyres. The assessment years are 1982-83 and 1983-84.

(2.) THE first question is regarding the correctness of the Tribunal's view that the amounts which had earlier been shown in the assessee's book as sundry credit balances of the customers and written back in the profit and loss account of the assessee is not taxable as the assessee's income. Counsel for the revenue relied on the decision of the Supreme Court in the case of CIT v. T. V. Sundaram lyengar and Sons Ltd., 1996 222 ITR 344 , and submitted that the decision of the Tribunal runs counter to the law laid down by the Supreme Court in that decision.

(3.) THE court answered the question raised by the department, viz., "whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in deleting the addition made by the Income Tax Officer representing unclaimed sundry credit balances written back to the profit and loss account by the assessee during the previous year relevant for the assessment year under consideration", in favour of the revenue.