COMMISSIONER OF INCOME TAX vs B. N. KALANI and SONS.

Sohani, J. - This is an application under s. 256(2) of the IT Act, 1961 (hereinafter referred to as the Act).

The material facts giving rise to this application briefly, are as follows :

For the asst. yr. 1979-80, the assessee claimed deduction on account of salary received from the employer as well as deduction on the value of perquisites received from the employer. The ITO, allowed the standard deduction of Rs. 3,500. The appeal preferred by the assessee before the AAC was dismissed. On further appeal before the Tribunal, the Tribunal held that the assessee was entitled to claim deduction on the value of perquisites. Aggrieved by the order passed by the Tribunal, the department sought reference but that application was rejected. Hence, the department has filed this application.

Having heard ld. counsel for the parties, we have come to the conclusion that this application deserved to be rejected. Standard deduction exceedings Rs. 3,500 has not been allowed to the assessee. The questions sought to be referred do not arise out of the order passed by the Tribunal. The application, therefore, deserves to be rejected.

For all these reasons, this application fails and is accordingly dismissed. No order as to costs, in the circumstances of the case.