ADDITIONAL COMMISSIONER OF INCOME TAX ADDITIONAL I T COMMR COMMISSIONER OF INCOME TAX COVENTRY SPRING AND ENGINEERING CO PRIVATE LIMITED COMMISSIONER OF INCOME TAX GUJARAT Vs. EAST COAST FLOOR MILLS PRIVATE LIMITED EAST COAST FLOOR MILLS PRIVATE LIMITED CELLULOSE PRODUCT OF INDIA LTD

JUDGEMENT

(1.) - C. As. Nos. 1406-07 of 1976

(2.) Two questions were referred to the High Court under the Income-tax Act, 1961. So far as the first question is concerned the answer of the High Court which was in favour of the assessee has to be upheld in view of the decision of this Court in C.I.T. v. Elecon Engineering Co. (1987) 167 ITR 639: (AIR 1987 SC 2014).

(3.) So far as the second question is concerned, the grievance of the Commissioner of Income-tax in the reference before the High Court was that the Tribunal should not have allowed the assessee to raise an additional ground for the first time before it. Both the High Court and the Tribunal have pointed out that the additional ground sought to be raised was purely one of law and was only an aspect of a question raised at earlier stages. We see no reason to differ from the view of the High Court on the second question as well. In the result, the answers given by the High Court are upheld. The appeal is dismissed. There will, however, be no order as to costs.