Jain Tube Co. Ltd. vs Cit
2001 Latest Caselaw 1000 Del

Citation : 2001 Latest Caselaw 1000 Del
Judgement Date : 27 July, 2001

Delhi High Court

Jain Tube Co. Ltd. vs Cit on 27 July, 2001

Equivalent citations: 2001 119 TAXMAN 476 Delhi

Author: P . Arijit

JUDGMENT

Arijit Pasayat, CJ.

On being moved for reference, the Tribunal, Delhi Bench 'C', has referred, at the instance of the assessed, the following questions under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act) for opinion of this court :

"1. Whether, on the facts and in the circumstances of the case, the difference in exchange amounting to Rs. 2,75,533 resulted in capital expenditure under section 43A of the Income Tax Act, 1961 and/or is not an allowable revenue expenditure under section 28 read with section 37 of the Act?

2. Whether, on the facts and in the circumstances of the case, the receipt in respect of the sale of import entitlements amounting to Rs. 7,38,634 constitutes the business income of the assessed assessable under the Income Tax Act, 1961?"

2. The factual aspects need not be gone into as the issue involved in the first question stands settled by a decision of the Apex Court in Sutlej Cotton Mills Ltd. v. CIT (1979) 116 ITR 1. Following the view expressed in the said decision, we answer the question in the affirmative, in favor of the revenue and against the assessed. So far as the second question is concerned, through the Tribunal referred to various decisions, it is not necessary to go into that in view of the provision contained in section 28(iii)(a) of the Act, which was made operative with effect from 1-4-1962 the question is answered in the affirmative in favor of the revenue and against the assessed.

3. The reference stands disposed of.