1992 (7) TMI 47

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....ned counsel for the assessee. On being moved by an application under section 256(2) of the Income tax Act, 1961 ( in short, " the Act " ), this court directed the Income-tax Appellate Tribunal, Cuttack Bench, Cuttack (in short, " the Tribunal ") to state a case and refer the following question for opinion: "Whether, on the facts and in the circumstances of the case, payment of interest to a ....

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.... dispute. According to the assessee, the Revenue having applied a flat rate of income in respect of the buses, it was not open to make further addition in relation to the interest paid, since that is supposed to have been taken into consideration while computing the net income from each bus. The stand of the Revenue, on the other hand, is that determination was made after taking into considerat....

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....f Rs. 8,000 per bus, interest paid to the partners was taken note of. It could not be also explained whether payment of interest was a new feature. It is true that each assessment year is separate unit, and strictly speaking, principles of res judicata are not applicable. But results of past years certainly provide a basis for assessment, when a best judgment of assessment is made. The Tribunal ca....