COMMISSIONER OF INCOME TAX Vs. K.L. POSWAL

JUDGEMENT

(1.) THE revenue has approached this court invoking the provisions of Section 256(2) of the Income Tax Act, 1961 (for brevity 'the Act') claiming that questions of law have emerged from the order dated 12 -5 -1986 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh in ITA No. 934/Chandi./84 in respect of assessment year 1981 -82. It has further been claimed that the Tribunal had committed grave error by refusing to refer the question raised by it by dismissing the application filed under Section 256(1) of the Act vide its order dated 23 -6 -1987. It has been insisted that the following questions of law would arise for determination of this Court:

(2.) WHETHER on the facts and in the circumstances of the case, the sum of Rs. 3,19,017 being the entire amount of interest on compensation awarded by the Hon'ble High Court on 10 -12 -1980 is liable to levy of Income Tax for the assessment year 1981 -82?

(3.) FOR the reasons afore -mentioned the petition is found to be devoid of merit and the same is accordingly dismissed.