TMI Blog1998 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... Hardillia Chemicals by the applicant to its wholly owned subsidiary during the previous year relevant to the assessment year 1985-86 and capital gains of Rs. 2,06,17,066 is leviable on the assessee ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that for the assessment year 1985-86 the excise duty element included of Rs. 4,49,298 included closing stock of ceramics should not be allowed as a deduction by following the decision of the Gujarat High Court in the case of Lakhanpal National Ltd. v. ITO [1986] 162 ITR 240 ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the interest under section 217(1A) was leviable for the assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1A) was leviable ?" Relating to the assessment year 1985-86: 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that a jeep constitutes motor car for the purpose of disallowance under section 37(3A) of the Income-tax Act ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the unrealised interest from Government securities is to be included as income of the assessee for the assessment year 1985-86 ?" For the year 1985-86 the first two questions are, in substance, similar to the question raised for the year 1984-85. These questions, on the facts of the case do not require any reference. The assessee admittedly changed its accounting year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of capital gains alone the assessment year should be treated as having remained unchanged as it was permissible under the law to have separate accounting years for different sources of income was rightly rejected by the Tribunal and the authorities below. Reliance placed by counsel for the assessee before us on section 3(4) of the Act does not help the assessee's case as the assessee has not sought permission of the Assessing Officer, to once again change the accounting year in relation to the income under the head "Capital gains". The change effected at the request of the assessee changing the accounting year from July to June 30, was, therefore, the accounting year in respect of the income under the head "Capital gains" as well. We do not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... securities should be included in the income of the assessee for the assessment year 1985-86 has been answered by the Tribunal in the affirmative. The Tribunal has rightly pointed out that the failure on the part of the assessee to collect the interest from the Government, which has issued the security, cannot be regarded as interest unrealisable. The fact that the assessee had lost the certificate did not mean that it could not obtain a duplicate and realise the interest from the Government. The ability of the Government to pay that interest was not a matter to be doubted. The application of the petitioner to refer this question is rejected. Question No. 2 proposed for the assessment year 1985-86 and question No. 3 proposed for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o assessment for the assessment year 1983-84 was on account of the act of the assessee in changing the accounting years. That, however, cannot affect the manner in which the immediately succeeding four assessment years have to be computed. The assessment year 1984-85 being a year beyond four immediately succeeding assessment years, the assessee had no right to carry forward the capital loss to that assessment year. Though the assessee has proposed a long list of 11 questions only two of them are found to be referable. We direct the Tribunal to refer the following questions: Relating to the assessment year 1985-86: "2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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