COMMISSIONER OF INCOMETAX Vs. BANGABASIATRESP LTD

JUDGEMENT

(1.) IN this reference under S. 256(1) of the IT Act, 1961 ('the Act') for the asst. yr. 1984-85 the following question of law has been referred to this Court:

(2.) THE only contention raised before us is whether in view of the circular No. 1807, dt. 14th May, 1985 the decision rendered in Presidency Medical Centre (P) Ltd.'s case (supra) will govern the asst. yr. 1984-85. It has been laid down in the said circular that the Department accepted the decision in the Presidency Medical Centre (P) Ltd.'s case (supra) prior to asst. yr. 1984-85. We are concerned here with the year asst. yr. 1984-85. In our view the amendment was made in S. 139(1) only from 1st April, 1987 which will govern the asst. yr. 1987-88 and subsequent years. We do not find that the asst. yrs. 1984-85 to 1986-87 will be separately treated because of the said Circular of the Board. We may mention that an amendment was made in S. 139 in 1970. The principle in Presidency Medical Centre (P) Ltd.'s case (supra) was applied by this Court after the said amendment had been made in 1970. This Court in CIT vs. Nagpur Steel & Alloys Ltd. (1988) 169 ITR 466 considered a similar case. In that case one of the questions was as follows: