2003 (3) TMI 44

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....the facts in Income-tax Appeal No. 215 of 2001. The following question is referred for opinion of this court: "Whether, on the facts and in the circumstances of the case and in law, the Income-tax Appellate Tribunal has erred in deleting the addition of Rs. 54,75,000 made on account of 1/5th (sic) of premium on the redeemable debentures without considering the fact that no liability had accrued during the year under appeal and it was a contingent liability which was payable only after the expiry of ten years and directing the Assessing Officer to follow the decision of the Supreme Court in the case of Madras Industrial Investment Corporation Ltd. v. CIT [1997] 225 ITR 802, where the facts of the case diferred from those of the Supreme Co....

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....: None appears for the respondents though served. Mr. R.V. Desai, learned counsel appearing for the Department/appellant, submitted that the ratio of the judgment of the Supreme Court in the case of Madras Industrial Investment Corporation Ltd. v. CIT [1997] 225 ITR 802 as also the judgment of this court in the case of Taparia Tools Ltd. v. Joint CIT [2003] 260 ITR 102 was not applicable as in this case the Assessing Officer found alteration in the terms of issue of debentures during the life of the issued debentures. He submitted that originally the debentures were issued at 2 per cent. which was changed to zero per cent. during the life of the issued debentures. That originally the issued debenture was for five years which was chang....