{"id":55311,"date":"1989-02-21T00:00:00","date_gmt":"1989-02-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989"},"modified":"2016-05-20T19:31:03","modified_gmt":"2016-05-20T14:01:03","slug":"commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989","title":{"rendered":"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989"},"content":{"rendered":"<div class=\"docsource_main\">Calcutta High Court<\/div>\n<div class=\"doc_title\">Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1989 180 ITR 238 Cal<\/div>\n<div class=\"doc_author\">Author: S Sen<\/div>\n<div class=\"doc_bench\">Bench: S C Sen, B P Banerjee<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> S.C. Sen, J. <\/p>\n<p>1. The following questions of law have been referred to this court by the Tribunal under Section 256(1) of the Income-tax Act, 1961 (&#8220;the Act&#8221;) :\n<\/p>\n<p>  &#8220;1. Whether, on the facts and in the circumstances of the case and on a proper construction of the relevant deed of lease, the Tribunal was right in holding that the income of the assessee from lease of its jute mill was assessable under Section 28 of the Income-tax Act, 1961, and not under Section 56 thereof ?\n<\/p>\n<p> 2. Whether, on the facts and in the circumstances of the case, the sum of Rs. 15,000 paid to an ex-employee is an admissible deduction in the computation of the assessee&#8217;s income from the leasing out of the asses-see&#8217;s jute mill ?&#8221;\n<\/p>\n<p>2. The assessment year involved in this reference is the assessment year 1963-64, for which the relevant accounting period ended on April 14, 1963.\n<\/p>\n<p>3. Question No. 1 in this reference came up for consideration before this court in the case of the same assessee, CIT v. Prem Chand Jute Mills Ltd. [1978] 114 ITR 769, in respect of the assessment year 1962-63. In view of that judgment, question No. 1 must be answered in the affirmative and in favour of the assessee.\n<\/p>\n<p>4. On question No. 2, the dispute is whether the sum of Rs. 15,000 paid to the ex-employee should be allowed as deduction in the computation of the assessee&#8217;s income. The Appellate Assistant Commissioner, in his order, directed the Income-tax Officer to re-examine the claim of Rs. 15,000 and if the date on which the liability was ascertained fell within the accounting year ended on April 14, 1963, the Income-tax Officer was directed to allow the expenses in the assessment for the assessment year under consideration.\n<\/p>\n<p>5. Since, the income is to be assessed under Section 28 of the Act, this expense has to be allowed. The Tribunal has rightly pointed out that if the relevant date on which the liability was ascertained fell within the accounting period ended on April 14, 1963, this would have to be allowed.\n<\/p>\n<p>6. In the circumstances, question No. 2 is also to be answered in the affirmative.\n<\/p>\n<p>7. Accordingly, both the questions are answered in the affirmative and in favour of the assessee.\n<\/p>\n<p>8. There will be no order as to costs.\n<\/p>\n<p> Bhagabati Prasad Banerjee, J.\n<\/p>\n<p>9. I agree.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Calcutta High Court Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989 Equivalent citations: 1989 180 ITR 238 Cal Author: S Sen Bench: S C Sen, B P Banerjee JUDGMENT S.C. Sen, J. 1. The following questions of law have been referred to this court by the Tribunal under Section 256(1) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,8],"tags":[],"class_list":["post-55311","post","type-post","status-publish","format-standard","hentry","category-calcutta-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989 - Free Judgements of Supreme Court &amp; High Court | Legal India\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989\" \/>\n<meta property=\"og:site_name\" content=\"Free Judgements of Supreme Court &amp; High Court | Legal India\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalindiaCom\/\" \/>\n<meta property=\"article:published_time\" content=\"1989-02-20T18:30:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2016-05-20T14:01:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg?fit=512%2C512&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"512\" \/>\n\t<meta property=\"og:image:height\" content=\"512\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Legal India Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@legaliadmin\" \/>\n<meta name=\"twitter:site\" content=\"@Legal_india\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Legal India Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989\"},\"author\":{\"name\":\"Legal India Admin\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/person\\\/0bfdffe9059fb8bb24a86d094609c5ea\"},\"headline\":\"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989\",\"datePublished\":\"1989-02-20T18:30:00+00:00\",\"dateModified\":\"2016-05-20T14:01:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989\"},\"wordCount\":406,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#organization\"},\"articleSection\":[\"Calcutta High Court\",\"High Court\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989\",\"name\":\"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989 - Free Judgements of Supreme Court &amp; High Court | Legal India\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#website\"},\"datePublished\":\"1989-02-20T18:30:00+00:00\",\"dateModified\":\"2016-05-20T14:01:03+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#website\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/\",\"name\":\"Free Judgements of Supreme Court & High Court | Legal India\",\"description\":\"Search and read the latest judgements, orders, and rulings from the Supreme Court of India and all High Courts. A comprehensive database for lawyers, advocates, and law students.\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#organization\"},\"alternateName\":\"Free judgements of Supreme Court & High Court of India | Legal India\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#organization\",\"name\":\"Judgements of Supreme Court & High Court | Legal India\",\"alternateName\":\"Legal India\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/wp-content\\\/uploads\\\/sites\\\/5\\\/2025\\\/09\\\/legal-india-icon.jpg\",\"contentUrl\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/wp-content\\\/uploads\\\/sites\\\/5\\\/2025\\\/09\\\/legal-india-icon.jpg\",\"width\":512,\"height\":512,\"caption\":\"Judgements of Supreme Court & High Court | Legal India\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/LegalindiaCom\\\/\",\"https:\\\/\\\/x.com\\\/Legal_india\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/#\\\/schema\\\/person\\\/0bfdffe9059fb8bb24a86d094609c5ea\",\"name\":\"Legal India Admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g\",\"caption\":\"Legal India Admin\"},\"sameAs\":[\"https:\\\/\\\/www.legalindia.com\",\"https:\\\/\\\/x.com\\\/legaliadmin\"],\"url\":\"https:\\\/\\\/www.legalindia.com\\\/judgments\\\/author\\\/legal-india-admin\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989 - Free Judgements of Supreme Court &amp; High Court | Legal India","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989","og_locale":"en_US","og_type":"article","og_title":"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989 - Free Judgements of Supreme Court &amp; High Court | Legal India","og_url":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989","og_site_name":"Free Judgements of Supreme Court &amp; High Court | Legal India","article_publisher":"https:\/\/www.facebook.com\/LegalindiaCom\/","article_published_time":"1989-02-20T18:30:00+00:00","article_modified_time":"2016-05-20T14:01:03+00:00","og_image":[{"width":512,"height":512,"url":"https:\/\/i0.wp.com\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg?fit=512%2C512&ssl=1","type":"image\/jpeg"}],"author":"Legal India Admin","twitter_card":"summary_large_image","twitter_creator":"@legaliadmin","twitter_site":"@Legal_india","twitter_misc":{"Written by":"Legal India Admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989#article","isPartOf":{"@id":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989"},"author":{"name":"Legal India Admin","@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/person\/0bfdffe9059fb8bb24a86d094609c5ea"},"headline":"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989","datePublished":"1989-02-20T18:30:00+00:00","dateModified":"2016-05-20T14:01:03+00:00","mainEntityOfPage":{"@id":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989"},"wordCount":406,"commentCount":0,"publisher":{"@id":"https:\/\/www.legalindia.com\/judgments\/#organization"},"articleSection":["Calcutta High Court","High Court"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989","url":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989","name":"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989 - Free Judgements of Supreme Court &amp; High Court | Legal India","isPartOf":{"@id":"https:\/\/www.legalindia.com\/judgments\/#website"},"datePublished":"1989-02-20T18:30:00+00:00","dateModified":"2016-05-20T14:01:03+00:00","breadcrumb":{"@id":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-prem-chand-jute-mills-ltd-on-21-february-1989#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.legalindia.com\/judgments\/"},{"@type":"ListItem","position":2,"name":"Commissioner Of Income-Tax vs Prem Chand Jute Mills Ltd. on 21 February, 1989"}]},{"@type":"WebSite","@id":"https:\/\/www.legalindia.com\/judgments\/#website","url":"https:\/\/www.legalindia.com\/judgments\/","name":"Free Judgements of Supreme Court & High Court | Legal India","description":"Search and read the latest judgements, orders, and rulings from the Supreme Court of India and all High Courts. A comprehensive database for lawyers, advocates, and law students.","publisher":{"@id":"https:\/\/www.legalindia.com\/judgments\/#organization"},"alternateName":"Free judgements of Supreme Court & High Court of India | Legal India","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.legalindia.com\/judgments\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.legalindia.com\/judgments\/#organization","name":"Judgements of Supreme Court & High Court | Legal India","alternateName":"Legal India","url":"https:\/\/www.legalindia.com\/judgments\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/logo\/image\/","url":"https:\/\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg","contentUrl":"https:\/\/www.legalindia.com\/judgments\/wp-content\/uploads\/sites\/5\/2025\/09\/legal-india-icon.jpg","width":512,"height":512,"caption":"Judgements of Supreme Court & High Court | Legal India"},"image":{"@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LegalindiaCom\/","https:\/\/x.com\/Legal_india"]},{"@type":"Person","@id":"https:\/\/www.legalindia.com\/judgments\/#\/schema\/person\/0bfdffe9059fb8bb24a86d094609c5ea","name":"Legal India Admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/4faa9d728ed1af3b73d52225c7f12901ac726fe6f7ea0a3348a1d51f3a930987?s=96&d=mm&r=g","caption":"Legal India Admin"},"sameAs":["https:\/\/www.legalindia.com","https:\/\/x.com\/legaliadmin"],"url":"https:\/\/www.legalindia.com\/judgments\/author\/legal-india-admin"}]}},"modified_by":null,"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/posts\/55311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/comments?post=55311"}],"version-history":[{"count":0,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/posts\/55311\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/media?parent=55311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/categories?post=55311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalindia.com\/judgments\/wp-json\/wp\/v2\/tags?post=55311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}