JAGANNATHRAM GANGARAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON a reference under S. 256(2) of the IT Act, 1961, this Court framed the following question for opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal has correctly applied the law and its determination of income is legal and proper and whether it is legally correct to decide that the interest received on account of the provisions of S. 244 amounting to Rs. 1,02,180 is assessable for the asst. year 1982 83 under the IT Act, 1961 ?"

(2.) IN this case, the assessee was assessed for the year 1982 83. The ITO took into consideration another "income" earned by way of interest amounting to Rs. 1,02,180. The said sum was added back to the income for the year. The interest became due to the assessee on account of excess collection made by the Revenue Department. Delayed payment of the amount of refund attracted interest under S. 244 of the IT Act. The sum was paid to the assessee on 22nd Jan., 1981.

(3.) IN view of the aforesaid findings of the Tribunal itself that the assessee was maintaining its accounts on cash basis, the opinion on the question framed for determination by this Court does not arise.