COMMISSIONER OF INCOME TAX Vs. SEA PEARL INDUSTRIES

JUDGEMENT

(1.) THE Department has filed this petition under Section 256(2) of the Income-tax Act, 1961, for a direction that the Tribunal should frame a statement of the case and refer the following questions to us for determination :

(2.) AS far as question No. 4 is concerned, it is clearly a question of law which requires to be raised. A similar question has been directed to be raised and referred to us in Original Petition No. 1588 of 1990. Accordingly, the Tribunal is directed to frame a statement of the case and refer the aforesaid question No. 4 to us for determination.

(3.) IN order to attract the provisions of Section 41(1)(a), the assessee should have obtained any amount or any benefit in respect of his trading liability, inter alia, by way of remission or cessation thereof. Such is not the case here. The Tribunal has rightly declined to frame a statement of the case and refer questions Nos. 1 to 3 to us. No useful purpose will be served by directing the Tribunal to refer the above questions Nos. 1 to 3 to us.