COMMISSIONER OF INCOME TAX Vs. BHARTI DEVI SARABHAI

JUDGEMENT

(1.) Two questions of law arising out of the tribunal's order were referred under Section 256 (1 of the Income Tax Act, 1961 to the Gujarat High court for its decision. These questions are the following:

(2.) The High court answered the first question in the affirmative in favour of the assessee. As a consequence of its answer to Question I, the High court by the impugned judgment dated 1/3/1978 did not answer Question 2 staling that the answer to it was not necessary. This appeal by " special leave is against that judgment.

(3.) The decision which was relied on by the High court in answering the above-quoted first question in favour of the assessee has been reversed by this court in CIT v. Kamalini Khatau. Accordingly following the decision of this court, Question I has to be answered in favour of the Revenue and against the assessee and the decision of the High court has to be reversed on that point. Since Question 2 referred to the High court was left unanswered by it in view of its answer to Question 1, the matter has to go back to the high court for deciding the above-quoted Question 2 in accordance with law.