COMMISSIONER OF INCOME TAX MADRAS AMALGAMATION PRIVATE LIMITED Vs. AMALGAMATION PRIVATE LIMITED :COMMISSIONER OF INCOME TAX MADRAS

JUDGEMENT

(1.) These appeals, by certificate of fitness granted by the Madras High Court under Section 66(A)(2) of the Income-tax Act, 1922 (hereinafter referred to as the 1922 Act) and Section 261 of the Income- tax Act, 1961 (hereinafter referred to as the 1961 Act) read with Article 133 of the Constitution of India, are directed against the judgment of the said High Court dated March 1, 1976 in Tax Cases Nos. 160 of 1969 and 239 of 1971 (Reference Nos. 52 of 1969 and 1 of 1971). T. C. No. 160 of 1969 related to the assessment year 1958-59 wherein two questions were referred by the Income Tax Appellate Tribunal (hereinafter referred to as the Tribunal) for the opinion of the High Court. T. C. No. 239 of 1971 related to the assessment years 1958-59 to 1962-63 wherein the Tribunal referred six questions for the opinion of the High Court. By the impugned judgment both the questions in T. C. NO. 160 of 1969 and all the questions, except question No. 3, in T. C. No. 239 of 1971 were answered by the High Court against the Revenue and in favour of the assessee. Question No. 3 in T. C. No. 239 of 1971 was answered in favour of the Revenue and against the assessee. Civil Appeals Nos. 139-142 of 1980 have been filed by the Revenue in respect of the questions that have been answered against the Revenue and Civil Appeals Nos. 7-11 of 1980 have been filed by the Revenue in respect of the question No. 3 in T. C. No. 239 of 1971 which has been answered against the assessee.

(2.) We will first take up Civil Appeals No. 139-142 of 1980 filed by the Revenue. These appeals can be split up into two parts, one relating to the answers to the two questions in T. C. No. 160 of 1969 and question Nos. 1 and 2 in T. C. No. 239 of 1971, and the other relating to answers to questions in T. C. 160 of 1969 and questions Nos. 1 and 2 in T. C. No. 239 of 1971 were as follows:- T. C. No. 160 of 1969

(3.) These questions arise in the following facts and circumstances.