Commissioner of Income Tax vs Indian Press Exchange Ltd.

Dipak Kumar Sen, J.—The question of law sought to be referred to this court in this application of the Revenue u/s 256(2) of the Income Tax Act, 1961, is as follows:

"Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in deleting the sum of Rs. 36,585 added u/s 40A(5) of the Income Tax Act, 1961 ?"

The controversy sought to be raised in the said question appears to be settled by an earlier decision of this court in the case of Indian Leaf Tobacco Development Co. Ltd. Vs. Commissioner of Income Tax, , which followed a still earlier decision of this court in the case of Commissioner of Income Tax Vs. Kanan Devan Hills Produce Company Ltd., .

In view of the aforesaid, we decline to issue any rule on this application which is rejected.

The learned advocate for the Revenue drew our attention to a decision of the Full Bench of the Kerala High Court in Commissioner of Income Tax Vs. Commonwealth Trust Ltd., , where the said High Court has taken a different view dissenting from the decision of this court in Commissioner of Income Tax Vs. Kanan Devan Hills Produce Company Ltd., . But, so far as this court is concerned, the decisions referred to earlier are binding on us and we are unable to take a contrary view by following the Kerala High Court.

Shyamal Kumar Sen , J.

I agree.