Shamlal and Co. vs Commissioner of Income Tax

This petition u/s 256(2) of the income tax Act, 1961, by the-petitioner is directed against the order dated May 30, 1983, whereby the Tribunal rejected the application u/s 256(1). On hearing learned counsel for the parties, we are satisfied that the following questions of law do arise from the order of the Tribunal :

(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the transaction relating to interest is not a genuine one as the genuineness of the transaction was never in dispute before the income tax authorities and was not the subject matter of appeal before the Tribunal ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the period of limitation u/s 149(3) to hold the assessee as agent had expired owing to default on the part of the assessee, giving no opportunity to the Department to be able to treat the assessee as agent ?

The Tribunal is, therefore, directed to submit the statement of the case and refer the aforesaid questions of law for the opinion of this court.