COMMISSIONER OF INCOME TAX Vs. INDIA AUTOMOBILES LTD

JUDGEMENT

(1.) ON a reference application under S. 256(1) of the IT Act, 1961, Tribunal has referred the following questions set out in para. 6, at p. 7 of the statement of case :

(2.) THE assessee owns house property at No. 9, Old Post Office Street, Calcutta. The house property income was assessed under the head "house property". In the earlier years, assessee was liable to pay corporation tax to the tune of Rs. 11,01,189 and on that basis that liability was allowed, though the assessee has challenged that levy on tax. During the assessment year in question, the liability was settled at Rs. 4,37,898 and assessee got the relief of Rs. 6,73,191. The ITO while completing the assessment took the view that for the balance amount, i.e., Rs. 6,73,191, which assessee got the relief, that amount cannot be taxed under the provisions of S. 41 (1) of the Act, but that can be taxed as income under the head "other sources" and that amount has been taxed as income under the head "other sources". Assessee carried the matter before the CIT(A). CIT(A) has also confirmed the view taken by the ITO. In appeal before the Tribunal, Tribunal has taken the view that ss. 22 to 27 constitute a separate code of computation of the income from the house property and there is no provisions in those sections under which this amount can be taxed. Now the question is whether this can be taxed under the head "other sources".

(3.) LEARNED counsel for the Revenue has also failed to show any provision under which the amount of Rs. 6,39,971 can be taxed. He fairly admits, that amount cannot be taxed under the provisions of S. 41(1) of the Act.