BAKELITE HYLAM LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The sole question in this referred case referred for the decision of this court under sub-section (1) of section 256 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), at the instance of the assessee, i.e., Messrs. Bakelite Hylam Ltd., Hyderabad, is :

(2.) It is covered by the decision of a Division Bench of this court in Kangundi Industrial Works (P.) Ltd. v. ITO [1980] 121 ITR 339 against the assessee. However, when this referred case came up for final disposal on 10/03/1988, before G. Ramanujulu Naidu and Y. V. Anjaneyulu JJ., learned counsel for the assessee represented that.... the said decision of this court required reconsideration as the High Courts of Bombay, Madhya Pradesh, Kerala and Gujarat dissented from the view of this court. The learned Judges felt that, in view of the importance of the matter, it was desirable to refer the matter to a Full Bench and that is how this referred case is before us.

(3.) The facts are in a narrow compass. The relevant assessment year is 1972-73 and the relevant previous year is the calendar year ending on 31/12/1971. The assessee made payments of advance tax on 15/06/197 1/09/1971, and 15/12/1971, aggregating to Rs. 9,07,500. On March 10 and 14, 1972, the assessee paid further amounts aggregating to Rs. 6,71,000 as advance tax. By an assessment order dated 23/05/1976, the Income-tax Officer assessed the income of the assessee at Rs. 19,43,750 and computed the Income-tax payable thereon by the assessee as Rs. 11,49,281 and arrived at the amount refundable to the assessee as follows : Rs. Rs. "Income assessed 19,43,750 --------- Tax thereon 11,49,281 Less : advance tax paid 9,07,500 2,41,781 --------- Less : tax paid in the nature of deposits 6,71,000 -------- Refundable 4,29,219" --------