COMMISSIONER OF INCOME TAX Vs. NIRMA CHEMICALS WORKS

JUDGEMENT

(1.) Commissioner of Income-tax, Gujarat-I, Ahmedabad preferred an application under Section 256 (1) of the Income-tax Act, 1961 (hereinafter referred to as the Act) before the Income Tax Appellate Tribunal requesting for a reference on the following questions of law:

(2.) It appears that the Tribunal rejected the application and hence the present application is filed before this Court inter alia requesting the Court to direct the Tribunal to raise and refer to this Court the questions of law referred hereinabove.

(3.) So far as Question No.1 is concerned, learned advocate Mr.Naik appearing for the Revenue submitted that, reading the order it appears that the Commissioner of Income-tax (Appeals) allowed only the expenses with regard to printing of calander and, therefore, the Assessing Office was justified in interpreting the order as he has interpreted. It is required to be noted that on page 3 of the order, several expenses are indicated claiming benefits under Section 37 (3A) of the Act. With regard to each item, submissions have been made by the assessee in writing which are taken note of. After considering all these items, the Commissioner of Income-tax (Appeals) came to the conclusion that the expenditure incurred on printing and distribution of calendars does not come within the mischief of section 37 (3A) of the Act. The learned Commissioner of Income-tax (Appeals) also observed that, in view of this background, the addition made by the Income-tax Officer is deleted. The Revenue submitted that all the items were not taken into consideration. Suffice it to say that if, according to the Revenue, the order passed by the Commissioner of Income-tax (Appeals) was required any rectification, it was necessary to approach the appropriate authority or ought to have approached Tribunal challenging that order. Nothing is done so far.