DIRECTOR OF INCOME TAX Vs. COMMONWEALTH DEVELOPMENT

JUDGEMENT

(1.) This is an appeal under section 260-A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal dated 25 th February, 2010, in respect of the assessment year 1998-99, dismissing the appellant's Income-tax Appeal No.1987/Mum/2006 and the respondent's cross-objections.

(2.) The appeal is admitted on the following substantial question of law :

(3.) The respondent is a statutory company established under the laws of of the United Kingdom. It filed its return of income for the assessment year 1998-99 on 5 th August, 1999, declaring an income of Rs.13,17,82,890/-. After taking into account, the TDS, a refund of Rs.21,78,079/- was claimed. The Joint Commissioner of Income-tax passed an order under section 143(3) and served a notice of demand under section 156 for Rs.30,86,180/-. The Assessing Officer, interalia, added to the total income, the sum of Rs.77,14,828/- received by the respondent towards upfront appraisal fee.