COMMISSIONER OF INCOME TAX Vs. SAVOY ENTERPRISES LTD

JUDGEMENT

(1.) In this reference made at the instance of the Revenue, the Tribunal has referred the following question for the opinion of this court under Section 256(1) of the Income-tax Act, 1961 :

(2.) This reference relates to the income-tax assessment of the assessee-company for the assessment year 1984-85. For this year, the assessee-company originally filed a return on June 28, 1984, showing a loss of Rs. 23,280. Subsequently, on March 31, 1987, the assessee-company filed a revised return showing a total income of Rs. 7,26,720 under the circular issued by the Central Board of Direct Taxes for declaration of higher income and/or wealth more popularly known as the Amnesty Scheme. While completing the income-tax assessment for the said assessment year, the Assessing Officer charged interest under Section 217 of the said Act. The assessee filed an appeal before the Commissioner of Income-tax (Appeals) and urged that charging of interest under Section 217 of the said Act for the said year was against the Amnesty Scheme as well as the directions issued by the Central Board of Direct Taxes under the said Scheme. The Commissioner of Income-tax (Appeals), however, rejected this contention of the assessee-company and held that the Amnesty Scheme was only an executive action and the provisions of law could not be overlooked in preference to executive instructions. He, therefore, confirmed the order of the Income-tax Officer charging interest under Section 217 of the said Act for the said year.

(3.) The assessee being aggrieved by the said order of the Commissioner of Income-tax (Appeals) further agitated the dispute before the Tribunal. The Tribunal held that the assessee has disclosed the amount under the Amnesty Scheme and, therefore, the assessee-company is entitled to the benefit of the executive instructions, which are binding on the Department. The Tribunal, therefore, allowed the appeal of the assessee-company on this point.