Commissioner of Income Tax vs Ammonia Supply Corpn. (P.) Ltd.

B.N. Kirpal, J.—The petitioner seeks a direction to the Tribunal to state the case and refer the following questions of law to this court:

(i) Whether, on the facts and in the circumstances of the case, the Tribunal is legally correct in holding that there was business activity during the year and that, accordingly, the entire expenditure of Rs. 22,996 for the assessment year 1971-72 was allowable as business expenditure?

(ii) Whether, on the facts and in the circumstances of the case, the Tribunal is legally correct in holding that interest/rent receipts during the year should be taxed as business receipts and that, therefore, the entire expenditure of Rs. 22,996 for the assessment year 1971-72 was allowable as business expenditure?

(iii) Whether, on the facts and in the circumstances of the case, the Tribunal is legally correct in allowing the entire expenditure of Rs. 22,996 for the assessment year 1971-72 in computing the taxable income of the assessee?

The essential question which arises is whether any business was carried on or not. That is evident from a bare perusal of the questions as framed. The question whether the assessee was carrying on any business activity or not depends upon the facts found by the Tribunal. In the instant case, the Tribunal has found as a fact that the assessee was carrying on business. We find that no question of law arises from the aforesaid conclusion of the Tribunal.

The petition is, accordingly, dismissed, but there will be no order as to costs.