1982 (11) TMI 10

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....ce under s. 256(1) of the I.T. Act, 1961 (hereinafter referred to as " the Act "), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion, " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the findings of the AAC that the sum of Rs. 2,00,930 received by the assessee from the....

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....1967-68 onwards, no business was carried on by the assessee firm. On 3rd August, 1974, the assessee received a sum of Rs. 2,00,930 in full and final settlement of its claims against the Railways, which were referred to arbitration. For the relevant assessment year 1975-76, the assessee contended that the amount received by it from the Railways was not taxable as business income as it related to a ....

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....expenditure or trading liability had been allowed in any assessment year, the amount received by the assessee could not be subjected to tax under s. 41(1) of the Act. The AAC, therefore, allowed the appeal preferred by the assessee. Aggrieved by that order, the Department preferred an appeal before the Tribunal. The Tribunal upheld the findings given by the AAC and dismissed the appeal. Hence, at ....