ASIATIC OXYGEN LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In this reference at the instance of the asses-see, the following question of law has been referred to this court under Section 256(1) of the Income-tax Act, 1961, for the assessment years 1968-69 and 1969-70 :

(2.) The facts leading to this reference are that the assessee carries on the business of manufacture of industrial gases. During the said two years, the assessee earned interest on unpaid call money from its shareholders amounting to Rs. 1,48,841 and Rs. 148, respectively. In the previous year relevant to the assessment year 1968-69, the assessee-company had initially offered for taxation the entire sum of Rs. 1,48,841. However, by way of an additional ground sought to be taken in appeal before the Commissioner of Income-tax (Appeals), such interest was claimed to be not taxable on the ground that it was a casual or a windfall gain.

(3.) In the assessment for the assessment year 1969-70, the interest of Rs. 148 was claimed to be not taxable on the aforesaid ground.