Shakuntala Sethi vs Commissioner of Income Tax

G.G. Sohani, Actg. C.J.

This is an application u/s 256(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act").

While making the assessment of the assessee for the assessment year 1979-80, the Income Tax Officer disallowed the claim of the assessee for deduction of a sum of Rs. 17,853 u/s 40A(2) of the Act. Aggrieved by the order passed by the Income Tax Officer, the assessee preferred an appeal before the Appellate Assistant Commissioner who allowed the appeal in that behalf. The Revenue, therefore, preferred an appeal before the Tribunal which allowed the appeal. Aggrieved by the order passed by the Tribunal, the assessee sought a reference, but as the application submitted by the assessee in that behalf has been rejected, the asses-see has filed this application.

Having heard learned counsel for the parties, we have come to the conclusion that the following questions of law do arise out of the order passed by the Tribunal :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal has erred in law in not affirming the finding of the Appellate Assistant Commissioner that the claim of the assessee for deduction of Rs. 17,853 was justified ?

Whether, on the facts and in the circumstances of the case, the Tribunal was not justified in directing the Income Tax Officer to make a fresh assessment in the light of the provisions of Section 64(1)(ii) of the Act ?"

The application is, therefore, allowed. The Tribunal is directed to state the case and to refer the aforesaid questions of law to this court for its opinion. In the circumstances of the case, parties shall bear their own costs of this application.