LAWS(MPH)-1996-7-86

COMMISSIONER OF INCOME TAX Vs. NADIR RASHID

Decided On July 10, 1996
COMMISSIONER OF INCOME-TAX Appellant
V/S
NADIR RASHID Respondents

JUDGEMENT

(1.) THIS is an income-tax reference at the instance of the Revenue under Section 256(1) of the Income-tax Act, 1961, and the following two questions of law have been referred by the Tribunal for answer by this court :

(2.) THE assessment years are 1983-84 and 1984-85. THE assessees are coheirs of the estate of the late Rashid Jaffar Khan, each having a 14/48ths share therein. THE said estate had foreign income of dividend and interest. THE assessee earned income in the U. K. out of which income-tax was deducted in the U. K. THE Assessing Officer included the gross amount of the said income in the total income of the assessees. THE assessees filed appeals before the Commissioner of Income-tax (Appeals) with the objection that the net amount and not the gross amount should have been included in their respective total income. THE appeal was accepted by the Commissioner of Income-tax (Appeals). Aggrieved by the order of the Commissioner of Income-tax (Appeals), the Revenue filed appeals before the Tribunal and the Tribunal upheld the stand of the assessees that only the net income and not the gross income was includible in their income. THE Revenue moved the Tribunal for referring the question to the High Court and accordingly question No. 1 has been referred by the Tribunal for answer by this court. Question No. 1 has already been answered by us in the case of CIT v. Yawar Rashid [1996] 218 ITR 699 against the Revenue and in favour of the assessee. For the reasons mentioned in the aforesaid order, question No. 1 is answered against the Revenue and in favour of assessees.