COMMISSIONER OF INCOME TAX Vs. COMMONWEALTH TRUST LIMITED

JUDGEMENT

(1.) PURSUANT to the direction of this court in O.P. No. 1277 of 1979, the following four questions have been referred to us by the Income-tax Appellate Tribunal, Cochin Bench :

(2.) IN the light of the decision of a Full Bench of this court in CIT v. B.M. Edward, INdia Sea Foods [1979] 119 ITR 334, question No. 2 is answered in favour of the assessee and against the Revenue.

(3.) THE Tribunal has not considered the question as to whether the amounts claimed by the assessee towards what is referred to as "children allowance" and "house rent" fall under Section 17(3)(ii) or Section 40(a)(v) of the Income-tax Act, 1961, as the sections stood at the relevant time. Without adverting to the correct classification of the amounts, the question whether the benefit granted under annexure-D circular is allowable in respect of the amounts in question cannot be answered. Accordingly, we decline to answer question No. 4.