LAWS(CAL)-1989-2-45

COMMISSIONER OF INCOME TAX Vs. ASHOKA CEMENT LTD

Decided On February 22, 1989
COMMISSIONER OF INCOME-TAX Appellant
V/S
ASHOKA CEMENT LTD. Respondents

JUDGEMENT

(1.) The Tribunal has referred the following question of law under Section 256(2) of the Income-tax Act, 1961 ("the Act") :

(2.) The dispute is basically in respect of capitalisation of pre-production expenditure. The question of law, referred to this court, has already been concluded by the judgment of the Supreme Court in the case of Challa-palli Sugars Ltd. v. CIT [1975] 98 ITR 167. Following that decision, the question must be answered in the affirmative and in favour of the assessee.

(3.) The Tribunal, in its statement of case, has pointed out that since the High Court had directed the Tribunal to refer the question, the question has been referred as framed by the Commissioner. In the rejection order of the application under Section 256(1), the Tribunal had pointed out the error in the figures mentioned in the question. The correct computation of the figures has been given by the Tribunal in its statement of case in paragraph 6 which is as under :