COMMISSIONER OF INCOME TAX Vs. MODI INDUSTRIES LTD

JUDGEMENT

(1.) The following two questions have been referred in this case:

(2.) Whether on the facts and in the circumstances of the case, the Income-Tax Appellate Tribunal was correct in law in holding that a sum of Rs. 32,33,116/- being the excess price realised by the assessee on sugar was not a revenue receipt in the hands of the assessee company and as such, not taxable in its hands

(3.) When the department has not challenged the earlier year's order, and had also not shown any distinguishing feature between the earlier year and the year in question, and if the Tribunal has followed its decision for the earlier year, that too for a meagre amount of Rs. 25,000/- said to have been spent for maintenance of the managing director's house, we do not think any such error of law can be said to have been committed in the order of the Tribunal as would qualify for a reference under Section 256. We, therefore, decline to answer the first question referred.