2010 (1) TMI 112

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....NT HEMANT GUPTA J.- The Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh, has referred under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following question of law for the opinion of this court: "Whether on the facts and in the circumstances of the case, the  Appellate Tribunal was right in law in holding that the amount of refunds received by the ....

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.... 1980 dated February 24,1982) to return a finding that since the issue of refund has not attained finality, therefore, such refund cannot be included as part of the taxable income during the relevant assessment year. 4. The Revenue has relied upon the judgment of the hon'ble Supreme Court in Polyflex (India) Pvt. Ltd. v. CIT [2002] 257 ITR 343, to contend that the date of receipt is relevant to....

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.... by the assessee or the value of benefit accruing to him is deemed to be profits and gains of business or profession and it becomes chargeable to income-tax as the income of that previous year." 6. The hon'ble Supreme Court held that since the assessee has obtained the amount by way of refund in respect of business expenditure incurred by it during the earlier year, it will fall under the earli....

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.... allowance had been given in the assessment for earlier period, the assessee is liable to disgorge that benefit as and when he obtains refund of the amount so paid. The consideration whether there is a possibility of the refund being set at naught on a future date will not be a relevant consideration. Once the assessee gets back the amount which was claimed and allowed as business expenditure duri....