COMMISSIONER OF INCOME TAX Vs. CARVANSERAI LTD.

JUDGEMENT

(1.) The Commissioner of Income Tax has filed this petition under Sec. 256(2) of the Income Tax 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. Accordingly 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 clause 14 of the main objects read as under :