Commissioner of Income Tax vs Nizam Sugar Factory Ltd.

In this I. T. C. filed by the Revenue u/s 256(2) of the Income Tax Act, 1961, the short question that arises for consideration is whether the Income Tax Appellate Tribunal has committed an error of law in not referring the following question, i.e., question No. 1 to this court for its opinion :

"Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in law in upholding the order of the Commissioner of Income Tax (Appeals) deleting the disallowance of Rs. 24,15,515 representing expenditure in respect of social overheads ?"

Out of the questions which were sought to be referred the second question concerned was already referred to the High Court by the Tribunal.

In computing the income of the assessee, the Assessing Officer disallowed an expenditure of Rs. 24,15,515 representing the expenditure in respect of social overheads. However, on appeal by the assessee, the appellate authority allowed the expenditure. This order of the appellate authority was confirmed by the Tribunal.

Having regard to the facts and circumstances of this case, the disallowance of the expenditure is a question of fact and in our view no referable question of law arises in this case. In this view of the matter, we do not find any nor in the order of the Tribunal for issuing the directions prayed for. The Income Tax case is, therefore, dismissed.