2002 (7) TMI 19 - HC - Income Tax

High Court dismisses application under Income-tax Act for instalment payments, finding it a factual matter.

The High Court of Madhya Pradesh dismissed an application under section 256(2) of the Income-tax Act, 1961, regarding payments made to an assessee in ... This is an application under section 256(2) of the Income-tax Act, 1961, as it stood before the amendment of 1999, praying for calling reference from the Income-tax Appellate Tribunal, Indore Bench, Indore, for resolution of the question, as extracted in para. 4 of the application, which is said to be a question of law. - The dispute is regarding payments made to the assessee in instalments, by one Shri R.C. Khosla (promoter and managing director of the respondent-company), in the relevant assessment year, amounting to Rs. 2,31,390. – penalty imposed in contravention of section 269SS was vacated in second appeal by the Tribunal on the finding that the said payment was not by way of deposit or loan, but towards adjustments of the amount drawn by Shri Khosla, from the company's account. We find ourselves in full agreement with the Tribunal The High Court of Madhya Pradesh dismissed an application under section 256(2) of the Income-tax Act, 1961, regarding payments made to an assessee in instalments, finding that the issue was a finding of fact and did not give rise to any question of law. The application for calling reference from the Income-tax Appellate Tribunal was declined and dismissed.