2001 (8) TMI 68

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.... For the assessment year 1979-80: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in sustaining the addition of Rs.26,000 as income of the assessee under section 2(24)(iv) of the Act?" For the assessment years 1978-79 and 1980-81: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the income of Rs.24,750 and Rs.5,000 were assessable under the provisions of sections 2(24)(iv) and 17(2)(iii) in the assessment years 1978-79 and 1980-81, respectively?" The dispute relates to the assessment years 1978-79, 1979-80 and 1980-81. The factual position in a nutshell is as follows: The assessee was one of the directors of the Nation....

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.... company and were incorporated in the annual audited statement of accounts which implied, tacitly if not expressly, the approval of the company to the waiver of interest. Accordingly, it was held that the amount in question was rightly brought to tax by the Assessing Officer as income of the assessee. On being moved for reference, the questions as set out above have been referred for the opinion of this court. We have heard learned counsel for the Revenue. There is no appearance on behalf of the assessee in spite of notice. The apex court had an occasion to consider a similar question in V. M. Salgaocar and Bros. Pvt. Ltd. v. CIT [2000] 243 ITR 383. It was, inter alia, held as follows: "Sections 17(2) and 40A of the Income-tax Act,....