PLASTIC PRODUCTS ENGG. CO. vs. COMMISSIONER OF INCOME TAX

ITR/182/1984HC GujaratGJHC24011856198423 April 1999Author: HONOURABLE MR. JUSTICE R.BALIA,HONOURABLE MR. JUSTICE ANIL R. DAVE2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court answered the question of law in the affirmative, in favour of the revenue and against the assessee. The reasoning is based on a separate, identical decision rendered on the same day concerning the assessment year 1976-77. The principle established is that the receipt of excise duty deposits is taxable income. The operative direction is that the question is answered in favour of the revenue. No issue was expressly left undecided.

What were the facts?

The assessee, Plastic Products Engg. Co., is challenging the taxability of excise duty deposits received. The assessment year in question is 1977-78. The Income Tax Appellate Tribunal, Ahmedabad, referred a question of law to the High Court of Gujarat for its opinion. This reference arises from the Tribunal's order in Income Tax Application No. 263/82. A similar question for assessment year 1976-77 in the case of the same assessee was decided by the High Court in a separate order on the same day.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the receipt of deposits of Excise Duty was taxable income of the assessee for assessment year 1977-78? The assessee contends that these deposits are not taxable income. The revenue contends that the receipt of excise duty deposits constitutes taxable income for the assessee. The judgment refers to a prior decision on an identical question for assessment year 1976-77.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 182 of 1984

For Approval and Signature:

Hon'ble MR.JUSTICE R.BALIA. and MR.JUSTICE A.R.DAVE ============================================================ 1. Whether Reporters of Local Papers may be allowed to see the judgements?

2.

To be referred to the Reporter or not?

3.

Whether Their Lordships wish to see the fair copy of the judgement?

4.

Whether this case involves a substantial question of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

5.

Whether it is to be circulated to the Civil Judge?

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The order continues below.

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