COMMISSIONER OF INCOME TAX Vs. MOOSA A M

JUDGEMENT

(1.) THIS is a reference under Section 256(2) of the Income-tax Act at the instance of the Revenue. The assessment year in question is 1978-79, the relevant accounting period for which ended on March 51, 1978.

(2.) THE assessee is engaged in the processing and export of sea foods. THE original assessment was completed on September 25, 1981. THE said assessment was set aside by the Income-tax Appellate Tribunal with a direction to redo the same. Consequently, a revised assessment order was made under Section 143(3) of the Act. While doing so, the Income-tax Officer disallowed the sum of Rs. 10,69,034 claimed by the assessee towards deduction from purchase tax liability. As against the said assessment, an appeal was filed before the Commissioner of Income-tax. THE Commissioner by the order dated September 26, 1985, found that there was a liability to pay the purchase tax as on March 51, 1979, for which a provision had been made by the assessee. Accordingly, the Commissioner allowed the deduction towards the liability to pay purchase tax. As against the said order, the Revenue filed an appeal before the Income-tax Appellate Tribunal. THE Tribunal by the order dated August 20, 1986, confirmed the order of the Commissioner of Income-tax deleting the disallowance made by the Income-tax Officer. THE Tribunal found that the question was covered by the decision of this court in the case of CIT v. K.A. Karim and Sons [1982] 133 ITR 515 [FB]. THE Tribunal did not interfere with the order of the Commissioner of Income-tax. Accordingly, the appeal filed by the Revenue was dismissed.

(3.) WE are compelled to observe that the above question has not been properly formulated. The question of law itself contains so many questions of fact. For instance, we will state the facts involved in the question of law formulated.