1990 (8) TMI 14

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.... the income-tax Act, 1961, for the assessment year 1982-83, two questions have been referred to this court, one at the instance of the Revenue and the other at the instance of the assessee. The question which has been referred at the instance of the Revenue is as follows : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that where there were lo....

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.... year, during the pendency of the litigation was not an allowable deduction in the assessment year 1982-83 ? The facts relating to this question are that the previous year of the assessee ended on October 26, 1981, relevant to the assessment year 1982-83. Because of breach of a certain contract for supply of goods, litigation ensued between the assessee on the one hand and the Director General ....

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....d the claim and allowed deduction of Rs. 3,35,140 from the income of the assessee. The Commissioner of Income-tax, however, passed an order dated March 27, 1985, under section 263 of the Income-tax Act directing the Income-tax Officer to withdraw the deduction which he held to have been wrongly allowed by the latter to the prejudice of the Revenue's interests. The assessee came in appeal bef....

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....It is not effective. It cannot extinguish or pass any title or interest. Unless the award became enforceable in terms of the decree passed by the court, it cannot be said that the disputes had been finally settled. The court can specify or modify or remit an award for fresh consideration and it cannot be taken for granted that the court may always pass a decree on the terms of the award. In our vi....