UNION LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Ahmedabad Bench 'c' has referred the following two questions under Section 256 (1) of the Income-tax Act, 1961 at the instance of the assessee for Assessment Year 1988-89:

(2.) WHETHER, on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that the amount transferred to Reserve Fund Account as per provisions of Sec. 67 of Gujarat Co-operative Societies Act, 1961 was not a diversion of income at source by over riding title ?

(3.) WHETHER on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that the transfer to reserve fund cannot be treated as a business expenditure and allowed deduction under Sec. 28/37 of the I. T. Act, 1961 ?