1990 (7) TMI 28

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....he instance of the Revenue, the Income-tax Appellate Tribunal has referred the following two questions of law for the decision of this court : "1. Whether, on the facts and in the circumstances of the case, and also in view of the statutory provision contained in rule 27F of the Regulations framed under the Electricity (Supply) Act, the Tribunal is right in law and fact in holding that there wa....

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....der is dated October 31, 1977. In appeal, the Appellate Assistant Commissioner, by order dated May 24, 1978, held that the interest was paid to the Electricity Board for not paying the bills in time, that there has been no violation of any law and the interest paid is not a penalty. The Appellate Assistant Commissioner took the view that if the assessee had borrowed the amount and paid the bills, ....

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....urt. We heard counsel for the Revenue, Mr. P. K. R. Menon, as also counsel for the respondent/assessee. It is not evident, either from the order passed by the Appellate Assistant Commissioner or the Income-tax Appellate Tribunal, under what statutory provision the assessee rendered itself liable to pay interest for not paying the bills in time. Even before us, counsel appearing on both sides we....

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....bliges the assessee to pay interest for not paying their bills in time. Even the said rule was not placed before us. In the above circumstances, we are not in a position to answer the questions of law referred to this court satisfactorily. We decline to answer the questions referred to us. At the same time, we direct the Income-tax Appellate Tribunal to restore the appeal to file and decide thi....