1989 (7) TMI 96

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ently revised by the Commissioner of Income-tax under section 263 of the Act. The Commissioner came to the conclusion that the Income-tax Officer had erroneously given a remission of interest of Rs. 1,20,373 and that the same was taxable under section 41(2) of the Income-tax Act. It appears that the respondent, along with two other concerns, namely, Chetan Swarup Vinod Swarup and Chetan Gupta and Co., had overdraft facilities with the Oriental Bank of Commerce. Approximately Rs. 15,40,000 was owed to the said bank and the respondent approached the said bank for full and final settlement by the respondent paying Rs. 12,00,000. This offer was accepted. According to the Department, the reduction of the amount from Rs. 15,40,000 to Rs. 12,00....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... law in holding as above in view of the bank's letter dated June 4, 1984, indicating that relief was towards interest and not principal ?" The Tribunal, by the impugned order, came to the conclusion that question No. 2 could not be referred because the letter of the bank dated June 4, 1984, on which reliance was sought to be placed, had not been produced before the Tribunal. With regard to the first question, the Tribunal came to the conclusion that it had followed the decision of the Supreme Court and that the conclusion of the Tribunal was a question of fact and not of law. After the dismissal of the application under section 256(1), the present petition under section 256(2) has been filed. As regards question No. 2, we find no infi....