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2013 (7) TMI 576 - KARNATAKA HIGH COURTWhether the Tribunal was right in holding that the sum received from the Excise Commissioner during the current assessment year for the difference in supply of alcoholic products in earlier years cannot be treated as income of the assessee during the current assessment year – Held that:- When the Government Order is set aside, if the assessee repays the money, he is eligible for adjustment of tax paid for the income received or for refund of the said amount - the third party has filed the public interest litigation for the relevant assessment year, he cannot avoid payment of tax on the said revenue receipt - In the event of assessee losing the battle, he will be bound to refund the amount to the Government - If he were to pay tax under the Act, when once that amount is returned, he would be entitled for refund of the said tax or adjustment of tax in future, but that does not enable him to withhold payment of tax on the pretext of pending litigation - In that view of the matter, the approach of the Tribunal is not proper - order requires to be set aside – appeal decided in favour of revenue.
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