IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME INCOME INCOME TAX REFERENCE NO. 242 OF 1988. TAX REFERENCE NO. 242 OF 1988. TAX REFERENCE NO. 242 OF 1988. The Commissioner of Income-tax. ... Applicant. V/s. General Insurance Corpn., Bombay. ... Respondent. Ashok Kotangale i/b. K.C.Sidhwa for the applicant. N.R.Mody i/b. Rustamji & Ginwala for the respondent. CORAM CORAM CORAM : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. DATED DATED DATED : 28th June 2005. : 28th June 2005. : 28th June 2005. P.C. P.C. P.C. : : : ---- ---- ---- . By this reference under section 256 of the Income-tax Act, 1961, the Income Tax Appellate Tribunal has referred the following question of law for the opinion of this Court: 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the sum of Rs.3,50,,00,000/- being provision for redemption of preference shares was not liable to be added back to the total income of the assessee for the assessment year 1979-80? . Learned counsel for the parties agreed that in view of the decision of the Apex Court in assessee’s own case reported in (1999) 240 ITR 139 (General General General Insurance Insurance Insurance Corporation v. C.I.T. Corporation v. C.I.T. Corporation v. C.I.T.), question referred to us has to be answered in the affirmative i.e. in favour of the assessee and against the revenue. We answer the question accordingly. . Reference stands disposed of with no order as to costs. (A.S.AGUIAR, (A.S.AGUIAR, (A.S.AGUIAR, J.) J.) J.) (V.C.DAGA, (V.C.DAGA, (V.C.DAGA, J.) J.) J.)