COMMISSIONER OF INCOME TAX Vs. PRABHAT ZARDA FACTORY

JUDGEMENT

(1.) THIS appeal on behalf of the Commissioner of Income Tax, Patna, is against the order of the Income Tax Appellate Tribunal, dated 12-2-1999, whereby and where under the departmental appeals were dismissed.

(2.) LEARNED counsel for the appellants only contended that the learned Tribunal has erred in law while rejecting the appeal. Because, in view of the provisions of section 176(3A) of the Income Tax Act, where any business is discontinued in any year, any sum received after the discontinuance shall be deemed to be the income of the recipient and charged to tax accordingly in the year of receipt. Since, the assessee had received the refund after acquisition of the erstwhile company, it was the liability of the recipient-assessee to pay the taxes.