ANANT MILLS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income -tax Tribunal was referred the following question of law for our opinion under section 256(1) of the Income -tax Act, 1961 : Common questions for the assessment years 1971 -72 and 1972 -73 :

(2.) IT appears that two appeals being Income -tax Appeals Nos. 197 and 198/(Ahd.) of 1974 -75, were preferred before the Income -tax Tribunal by the Revenue against the order of the Appellate Assistant Commissioner for the assessment year 1971 -72 and 1972 -73. The said appeals were allowed by the Tribunal and thereupon the assessee had filed Reference Applications Nos. 465 and 466/(Ahd.) of 1976 -77, and on such reference applications the statement of case along with the questions of law are drawn up. The Tribunal has thus, in fact, referred the aforesaid questions by two references for assessment years 1971 -72 and 1972 -73. However, the registry of this court has numbered the said references as one reference but, in view of the fact that there were two reference applications arising from the consolidated judgment and order in two appeals before the Tribunal, two references should have been registered, and we, accordingly, direct the registry of this court to renumber the reference as Income -tax References Nos. 163 of 1977 and 163A of 1977.

(3.) IN the aforesaid fact situation, we are now required to answer the questions referred for our opinion. Questions Nos. 1 and 3 are inter -connected and the answer to one question is reflected in the answer to another question, and, therefore, the same are discussed together.