COMMISSIONER OF INCOME TAX Vs. MOHANLAL RANCHHODDAS

JUDGEMENT

(1.) ON being directed by this Court under s. 256(2) of IT Act, 1961, the Income -tax Appellate Tribunal has referred the following questions of law for our opinion :

(2.) IT may be stated that two reference applications being Reference Application Nos. 42 and 43 were preferred before the Tribunal and two IT Applications being IT Application Nos. 29 and 30 were preferred to this Court when this Court required the Tribunal to draw up the statements of case and refer the question of law and thereupon the Tribunal has referred the aforesaid questions to us by two separate reference applications. These two references, therefore, ought to have been registered separately, but the Registry of this Court has consolidated the same in view of the fact that one statement of case is prepared by the Tribunal. We, accordingly, direct the Registry of this Court to register the aforesaid references as IT Ref. Nos. 153/78 and 153A/78.

(3.) QUESTION No. 1 - Conversion of investment into stock -in -trade - whether permissible ?