TMI Blog2010 (1) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Show cause Notice during the assessment year in which such liability was discharged. – Decision in favor of revenue – against the assessee. - 38 of 1990 - - - Dated:- 8-1-2010 - JASBIR SINGH and HEMANT GUPTA JJ Ms. Urvashi Dhugga for the appellant. Salil Bali for the respondent. JUDGMENT HEMANT GUPTA J.- The Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh, has referred under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following question of law for the opinion of this court: "Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the amount of refunds received by the assessee from the Central Excise Department du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re or trading liability incurred by the assessee. This is the first step. Coming to the next step the assessee must have subsequently (i) obtained any amount in respect of such loss or expenditure; or (ii) obtained any benefit in respect of such trading liability by way of remission or cessation thereof. In case either of these events happen, the deeming provisions enacted in the closing part of sub-section (1) comes into play. Accordingly, the amount obtained by the assessee or the value of benefit accruing to him is deemed to be profits and gains of business or profession and it becomes chargeable to income-tax as the income of that previous year." 6. The hon'ble Supreme Court held that since the assessee has obtained the amount by wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he court or Tribunal upholds the levy at a later date, the assessee will not be without remedy to get back the relief." 7. In view of the aforesaid judgment, the assessee has claimed the benefit of expenditure on excise duty in the earlier years, but the same was refunded during the relevant assessment year. The subsequent show-cause notices do not amount to cessation or remission of trading liability but receipt on account of expenditure incurred earlier. 8. Therefore, in view of the aforesaid judgment, which covers the issue in the present case, it is held that the refund of excise duty received during the relevant assessment year would be taxable in that year and mere show-cause notice to dispute such refund cannot be interpreted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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