MYSORE KIRLOSKAR LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tribunal, by these references under section 256(1) of the Income-tax Act, 1961 (the "Act"), has referred the following three question for the opinion of this court :

(2.) WE may straightaway dispose of questions Nos. 1 and 2 since the answers to them present no problem. In view of the amendment to section 35(2) of the Act by the Finance (No. 2) Act, 1980, retrospectively brought into force from April 1, 1962, counsel on both sides submitted that question No. 1 has to be answered in the negative and in favour of the Revenue. WE accordingly answer the same.

(3.) THIS takes us to question No. 3. To answer this question, we may set out some relevant facts :