COMMISSIONER OF INCOME TAX Vs. N K JAIN

JUDGEMENT

(1.) THIS reference has been made under S. 256(1) of the IT Act, 1961, and pertains to the asst. yr. 1974 -75. The facts, as found by the Tribunal and as stated in the statement of the case, are as under :

(2.) THE Department then filed an appeal to the Tribunal. The said appeal was dismissed by the Tribunal who held that in view of the provisions of cl. (b) of the Expln. to S. 9(1)(i) of the IT Act and also by taking note of the fact that the proviso to the said section which had existed, had been deleted w.e.f. 1st April, 1964, the assessee was not liable to be taxed on any income deemed to accrue or arise from the conversion of materials purchased by him for the purpose of export.

(3.) AT the instance of the Department, the Tribunal has stated the case and referred the following question of law to this Court :