Commissioner of Income Tax vs Capital Bus Services P. Ltd.

Arijit Pasayat, C.J.—At the instance of the Revenue, the following question has been referred for the opinion of this court u/s 256(1) of the Income Tax Act, 1961 (in short "the Act"), by the Income Tax Appellate Tribunal, Delhi Bench "C", Delhi (in short, "the Tribunal") :

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in allowing the sum of Rs. 2,62,658 as a short term capital loss in the assessment year 1975-76 ?"

The dispute relates to the assessment year 1975-76.

The dispute related to the question as to in which year the amount of Rs. 2,62,658 was to be allowed as a short term capital loss. The Commissioner of Income Tax (Appeals) (in short, the "CIT(A)"), held that it was relateable to the assessment year 1974-75. The assessed''s stand was that it is allowable as deduction in 1975-76. The Tribunal noticed that the last payment was made in January, 1974, and the assessed was justified in waiting for some more time before the amount could be written off as a bad debt. Accordingly, it held that the short term capital loss would be for the assessment year 1975-76.

We have heard learned counsel for the Revenue. There is no appearance on behalf of the assessed in spite of service of notice.

Learned counsel for the Revenue submitted that the Commissioner of Income Tax (Appeals) had made an elaborate analysis of the factual position to hold that the assessment year 1974-75 was the appropriate assessment year in which the adjustment was to be made. We find that the Tribunal has taken note of the factual aspects in detail to hold that the assessment year 1975-76 would be the appropriate assessment year. The conclusion is essentially factual giving rise to no question of law. We decline to answer the question referred.

Reference accordingly is disposed of.