COMMISSIONER OF INCOME TAX Vs. SURENDRA OVERSEAS LTD

JUDGEMENT

(1.) In this reference under Section 256(1) of the I.T. Act, 1961, the following question is raised :

(2.) The relevant facts for answering this question as found by the Tribunal are as follows:

(3.) Taking into account the facts and circumstances of the case and the conclusion arrived at by the Tribunal, we are of the opinion that the Tribunal was right in holding that the sum of Rs. 18,224 received by the assessee could not constitute the income of the assessee for the assessment year 1962-63. But we also observe that the assessee has stated that subsequently the average adjusters had recommended a refund of Rs. 7,257.76, which was in excess of the final amount of contribution. The assessee has also stated that from the deposit balance of Rs. 18,223, if the amount refundable of Rs. 7,257 was deducted the income which accrued in 1964-65, when the final report of the adjusters was finalised, was Rs. 10,966.