On appeal, the High Court upheld the decision of Tribunal on the ground that contract between the parties are clear that refund must be claimed within two months of declaration of results and any refund application there-after would not be granted. In view of the clear finding of fact, the parties would be governed by the contract and the principle laid down in T. V. Sundaram Iyengar and Sons Ltd (1999) 222 ITR 344 (SC) would be relevant in the present case. (IT Ref No. 158 of 2000 dt. 01-07-2017) (AY. 1989-90)
E.K. Thakur (Deceased) Through LR Gautam E Thakur .v. CIT (2018) 163 DTR 380 (Bom.)(HC)
S. 41(1) : Profits chargeable to tax – Remission or cessation of trading liability – Students who could not pass the examination would get 50 percent of fees as refund within two months from the declaration of results of examination – Contract between parties clear and Tribunal is right is holding that the unclaimed amounts were assessable to tax as deposit changed its character into income.