COMMISSIONER OF INCOME TAX Vs. M L NARANG

JUDGEMENT

(1.) QUESTIONS referred in these reference applications being identical, this judgment shall govern both of them. Pursuant to this court's directions in ITCs No. 115 and 116/76, under section 256(2) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), the Tribunal has referred the following question, in each case, pertaining to assessment year 1966 -67, for opinion of this court :

(2.) BACKGROUND facts, which are almost undisputed, are as follows :

(3.) SECTION 140A was inserted by section 34 of the Finance Act, 1964. The section at the relevant time read as follows :