Commissioner of Income-tax Vs. Mineral and Metals Trading Corporation of India Ltd. - Court Judgment

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direct taxation - total income - income tax act, 1961 - whether tribunal justified in law in upholding order of appellate assistant commissioner deleting addition of certain amount from total income of assessed - material on record establishes that said amount was transfer from corporation to assessed in reserve held by corporation before bifurcation - amount not to be treated as income as it was share of reserve and amounted to capital receipt - question answered in affirmative. - labour & services disability pension: [vikramajit sen, sanjiv khanna & s.l.bhayana,jj] army act (46 of 1950), section 192 & pension regulations for the army (1961), regulation. 173 claimant was on casual leave sustained injury which contributed to invalidation for military service claim for disability pension held, to claim disability pension by military personnel it requires to be established that the injury or fatality suffered by the concerned claimant bears a causal connection with military service. secondly, if this obligation exists so far as discharge from the armed force on the opinion of a medical board the obligation and responsibility a fortiori exists so far as injuries and fatalities suffered during casual leave are concerned. thirdly, as a natural corollary it is irrelevant whether the concerned personnel was on causal or annual leave at the time or at the place when and where the incident transpired. this is so because it is the causal connection which alone is relevant. fourthly, since travel to and fro the place of posting may not appear to everyone as an incident of military service, a specific provision has been incorporated in the pension regulations to bring such travel within the entitlement for disability pension if an injury is sustained in this duration. fifthly, it cannot be said that each and every injury sustained while availing of casual leave would entitle the victim to claim disability pension. sixthly, provisions treating casual leave as on duty would be relevant for deciding questions pertaining to pay or to the right of the authorities to curtail or cancel the leave. lastly, injury or death resulting from an activity not connected with military service would not justify and sustain a claim for disability pension. this is so regardless f whether the injury or death has occurred at the place of posting or during working hours. this is because attributability to military service is a factor which is required to be established.arijit pasayat , c. j.1. heard.2. at the instance of the revenue, the following question was referred for opinion under section 256(1) of the income-tax act, 1961, by the income-tax appellate tribunal, delhi bench 'b', new delhi (in short 'the tribunal'), for the assessment year 1972-73 :'whether, on the facts and in the circumstances of the case, the tribunal was justified in law in upholding the order of the appellate assistant commissioner deleting the addition of rs. 32 lakhs from the total income of the assessed ?'the assessing officer was of the view that a sum of rs. 32 lakhs received by the assessed was a revenue receipt and brought it to tax accordingly. the appellate assistant commissioner did not agree with the aforesaid finding and holding that it was a capital receipt, deleted the addition. the tribunal with reference to the materials placed on record held that the transfer of rs. 32 lakhs from the state trading corporation to the minerals and metals trading corporation is as a part of its share of the minerals and metals trading corporation (the 'assessee'), in the reserve held by the state trading corporation before bifurcation. in other words it upheld the views of the appellate assistant commissioner. the tribunal held that it was not an income, but the share of reserve.3. learned counsel for the revenue submitted that the true nature of the contention was not appreciated by the appellate assistant commissioner or the tribunal.4. we find that the tribunal after referring to the factual aspects recorded the aforesaid findings of fact that the amount in question cannot be treated as income as it was a share of reserve.5. we do not find any illegality in the conclusions of the tribunal and the conclusions being factual, no question of law arises out of the order of the tribunal. the factual finding recorded that it was received as a part of the share has not been challenged by the revenue. that being the position,the question referred is answered in the affirmative, in favor of the asses-see and against the revenue.