COMMISSIONER OF INCOME TAX Vs. CARVANSERAI LIMITED

JUDGEMENT

(1.) THE CIT has filed this petition under S. 256(2) of the IT Act, 1961, seeking a direction that the Tribunal should state the case and refer two questions of law to this Court :

(2.) IT appears that the respondent -company was formed with the primary object of setting up a hotel. According to its memorandum of association, a large number of business activities could be undertaken by the respondent. For the purposes of this petition, the three objects which are relevant are as follows :

(3.) FIRSTLY , cl. 14 of the main objects reads as under :