Association of Travel Agents vs Income Tax Appellate Tribunal and Another

Having heard learned counsel for the assessee and learned counsel for the Revenue, we are of the opinion that whereas questions Nos. (a) and (c) cannot be said to raise questions of law arising out of the order of the Income Tax Appellate Tribunal, question No. (b) is a question of law which does arise out of the order of the Tribunal. We, accordingly direct the Income Tax Appellate Tribunal to state the case and refer the following question for our opinion :

"Whether, on the facts of the case and in law and specially in the light of the CBDT Circular referred to in Commissioner of Income Tax, Bombay City-VII Vs. V.H. Sheth and others, , the Tribunal was right in ruling that the association of travel agents could still be assessed to Income Tax as an association of persons even after the prior assessment of such income in the hands of its constituents, thus resulting in double taxation ?"

The application is, accordingly, allowed in part. The parties will bear their own costs.