2005 (4) TMI 545

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....er section 256(2) of the Income-tax Act, 1961, (hereinafter referred to as 'the Act') for opinion of this Court. "Whether on the facts and in the circumstances of the case and despite the provisions of Explanation below clause (a) of sub-section (1) of section 44AC of the Income-tax Act, the I.T.A.T. is legally correct in holding that 'Nirgam Mulya' of Rs. 36,52,952 paid by the assessee could no....

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....fficer quantified the purchase price as under:-- Purchase of liquor Rs. 5,76,222 Capsuling charges Rs. 7,45,684 Nirgam Mulya Rs. 36,52,952 Rs. 49,74,858 By applying a rate of 40 per cent as provided in section 44AC the Assessing Officer computed a profit of Rs. 19,89,943 and the assessment was completed on total income of Rs. 20,08,030. 4. Aggrieved with the above decision of the Assessin....

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....d as purchase price as it formed part of 'bid money'. 6. As is evident, the department's stand is that the artificial meaning which the Ordinance dated 10-1-1991 referred to supra, gave to the term 'bid money' could not be imported for interpreting the provisions of section 44AC as in such a situation while Nirgain Mulya would not constitute a part of purchase price in the State of U.P., the same....

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....o the evil that prevailed and so to the extent the non obstante clause in section 44AC excluded the provisions of sections 28 to 43C (applicable to all assessees), the provisions are unreasonable. We concur with the aforesaid conclusion of the Andhra Pradesh High Court on this aspect and hold that section 44AC is a valid piece of legislation and is an adjunct to and explanatory to section 206C. It....