Punjab Small Industries Corporation ... vs Commissioner Of Income-Tax

The Supreme Court granted special leave and held that the Income-tax Appellate Tribunal should have referred a question of law regarding the disallowance of Rs. 8,00,063 claimed by the assessee for demurrage and wharfage. The Court found that the Tribunal's decision to uphold the disallowance solely due to a pending arbitration claim against the contractor was not justified. The appeal was allowed, directing the Tribunal to refer the question to the High Court for further consideration.