TMI Blog1970 (4) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee from the Nadiad Municipality is liable to inclusion in the income of the accounting year ended March 31, 1961, under sections 10 and 13 of the Income-tax Act, 1922 ?" This reference arises out of the assessment made upon the assessee-company for the assessment year 1961-62, the relevant accounting year being the one ended on 31st March, 1961. the assessee-company was carrying on the business of supplying electricity to consumers at Nadiad. One of such consumers was the Nadiad Municipality. There was an agreement between the assessee-company and the Nadiad municipality under which the assessee-company was to supply electricity to the Nadiad Municipality for "street lighting etc., purposes" at the rate fixed in the agreement at 19 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied by the assessee-company to the Municipality after the expiry of the said agreement the assessee-company credited the amount actually received which was calculated at the rate of 19 paise per unit, but the balance of the amount calculated at the rate of 11 paise per unit which at the end of the accounting year, i.e., on 31st March, 1961, amounted to Rs. 35,251.02, was shown by it in its balance-sheet as an asset under the head "Sundry creditors considered doubtful". The revenue sought to bring to tax the said amount of Rs. 35,251.02. The Tribunal has held the said amount not to be includible in the assessable income of the assessee-company. This reference has, therefore, been made at the instance of the Commissioner of Income-tax. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to the judgment of the learned single judge of the Gujarat High Court in the said case which is Nadiad Borough Municipality v. Nadiad Electricity Co. Ltd. That judgment holds that the assessee-company was bound to continue to supply electrical energy to the Nadiad Municipality at the same rates as were specified in the said agreement. We are informed that this judgment has been confirmed by a Division Bench of the Gujarat High Court in the Letters Patent Appeal. We have referred to this judgment as it is a case reported in an authorised law reporter. But so far as the record of this case goes, there appears to be nothing to show that there was any right or obligation in the assessee-company to charge the municipality for the electrical en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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