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Commissioner of Income-tax, Bombay City-i Vs. Bombay Suburban Electricity Co. Ltd. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtMumbai High Court
Decided On
Case NumberIncome-tax Reference No. 179 of 1971
Judge
Reported in[1983]142ITR298(Bom)
ActsIncome Tax Act, 1961 - Sections 43(1) and 43(43)(6)
AppellantCommissioner of Income-tax, Bombay City-i
RespondentBombay Suburban Electricity Co. Ltd.
Excerpt:
- .....interpretation of sections 43(1) and 43(6)(b) of the income-tax act, 1961, in arriving at the actual cost/written down value of assets, which were in existence when the new act came into force, any adjustment should be made on account of contributions paid by customers other than government and public or local authorities, when such adjustment was not required to be made when the actual cost/written down value was determined for the first time under the repealed act ?'2. the counsel for both the sides are agreed that the answer to be given to the said question is concluded as far as this court is concerned by the decision of this court given in cit v. bassein electric supply co. ltd. : [1979]118itr884(bom) . the counsel are also agreed that for the very reasons as are to be found in.....
Judgment:

S.K. Desai, J.

1. The question referred to this High Court by the Income-tax Appellate Tribunal, Bombay Bench 'C', under s. 256(1) of the I.T. Act, 1961, is as follows :

'Whether on a proper interpretation of sections 43(1) and 43(6)(b) of the Income-tax Act, 1961, in arriving at the actual cost/written down value of assets, which were in existence when the new Act came into force, any adjustment should be made on account of contributions paid by customers other than Government and public or local authorities, when such adjustment was not required to be made when the actual cost/written down value was determined for the first time under the repealed Act ?'

2. The counsel for both the sides are agreed that the answer to be given to the said question is concluded as far as this court is concerned by the decision of this court given in CIT v. Bassein Electric Supply Co. Ltd. : [1979]118ITR884(Bom) . The counsel are also agreed that for the very reasons as are to be found in the above decision, the present question may also be answered in accordance with the answer given in the said decision. Accordingly, the said question in the present reference is answered in the affirmative and in favor of the Revenue.

3. The parties are directed to bear their own costs of the reference.


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