HINDUSTAN ZINC LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tribunal has referred the following questions of law arising out of this appellate order in ITA No. 162/Jp/1996 relating to the asst. yr. 1994 -95 in the case of applicant -assessee :

(2.) THE applicant -assessee at the relevant time was the public sector corporation controlled by the. Central Government. It has filed a return of income for the asst. yr. 1994 -95. While issuing the intimation under Section 143(1)(a) as per the provisions prevailing at the relevant time, the AO purported to make adjustment under Section 143(1)(a) made an addition of Rs. 6,91,46,266 which has been charged by the assessee to P&L; a/c as provision for payment of revision in basic pay as per charter of demand and Government instructions. The additions have been done on the basis of the opinion of the auditors in their audit report that this is contingent liability. As a result of the aforesaid additions made vide intimation under Section 143(1)(a), additional tax was also imposed.

(3.) ON an application made under Section 256 of the IT Act, 1961, the aforesaid questions of law have been referred to us for our decision.