G. Gopinathan vs Commissioner of Income Tax

T.L. Viswanatha Iyer, J.—The assessee-petitioner is a contractor who had supplied electric poles to the Kerala State Electricity Board in the course of about five years. In arbitration proceedings, he was awarded an amount of Rs. 6,08,578 by an award dated November 17, 1977. According to the assessee, this related to electric poles supplied during the accounting years corresponding to the assessment years 1974-75 to 1978-79. He had, therefore, apportioned this amount with reference to the number of poles supplied during these years and submitted returns for all the years from 1974-75 to 1978-79. For the year 1978-79, he had included an amount of Rs. 1,53,996 as assessable income during this year. His case is that the returns including the apportioned amounts for the prior years 1974-75 to 1977-78 have been accepted by the income tax Officer and all the assessments completed as nil. Nevertheless, according to the assessee, the income tax Officer has purported to bring to tax the entire amount of Rs. 6,08,578 again for the year 1978-79 by making an addition of Rs. 4,54,762. This was challenged unsuccessfully in appeal before the Commissioner of income tax (Appeals) and the Appellate Tribunal. The application for reference of an alleged question of law having been dismissed, the petitioner-assessee has filed this application for compelling reference of certain questions of law stated to arise out of the order of the Tribunal. We do not find any question of law arising for decision in this case. Admittedly, the entire amount of Rs. 6,08,578 was received during the accounting year relevant to assessment year 1978-79. This was for the value of the electric poles which the petitioner had supplied to the Electricity Board. The petitioner has not pointed out any principle of law by which the price of goods received during a particular year has to be dealt with in the years in which the supplies were made. On the other hand, and as discussed by the Appellate Tribunal, the position is to the contrary. It is the year of accrual of the income that is relevant for the assessment. The petitioner has no case that the entire income had not accrued during the accounting period relevant to the assessment year 1978-79. There is therefore no question of law which requires to be referred on this ground.

The petitioner had a further case that part of this income has been brought to assessment in the prior years 1974-75 to 1977-78. This contention had been raised before the Tribunal as well. The Tribunal, after consideration of the facts, came to the conclusion that there is no truth in this case of the assessee. The complaint about double taxation appears to be more imaginary than real. Even otherwise, if the income is liable to be taxed in the year 1978-79, the fact that it was wrongly assessed in some other year will not enable the assessee to contend that the instant assessment is invalid in law. We do not find any question of law liable to be referred to this court u/s 256(2). The application is, therefore, dismissed.