Central India Electric Supply Co. vs Commissioner of Income Tax

We have heard learned counsel for the appellant, read the judgment of the High Court under appeal and the judgment of the Tribunal, which the High Court reversed. We are of the view, having regard to the facts and circumstances of the case, that the High Court was right in answering the following two questions in the negative and in favour of the Revenue.

"(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that no income accrued to the assessee u/s 41(2) of the income tax Act in the assessment year 1970-71 ?

(2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the income tax Officer was not justified in reopening the assessment for the assessment year 1970-71 u/s 147(a) of the income tax Act. ?"

The High Court was right in coming to the conclusion that the para-meters of Section 147(a) of the income tax Act were satisfied for the purposes of reopening the assessment for the assessment year 1970-71.

It was also justified in coming to the conclusion that income had accrued to the assessee u/s 41(2) of the Act in the assessment year 1970-71. It is clear from the facts that the dispute before the District Judge, the High Court and this court in regard to the umpire's award, made a rule of the court, was restricted to an amount of Rs. 60,000 and to interest. Therefore, the balance of the amount awarded became due to the appellant when the award was made a rule of the court within the previous year relevant to the assessment year 1970-71. The appeal is dismissed with costs.