COMMISSIONER OF INCOME TAX Vs. PRAYASHVIN B PATEL

JUDGEMENT

(1.) THE CIT, Gujarat, (Central) preferred an application before Tribunal under s. 256(1) of the IT Act, 1961 (hereinafter referred to as the Act), inter alia, requesting the Tribunal to make a reference to this Court on the following question of law :

(2.) THE Tribunal rejected the application filed at the instance of the CIT. Hence, the present application.

(3.) THE assessee preferred an appeal against the order passed by the CIT. The Tribunal pointed out in para 2 of its order that the CIT noted that the assessee had not carried out any business activity during the course of the year. In para 3 of the order, the Tribunal also pointed out that the CIT had allowed the interest paid by the assessee against the loan and expenditure considering this as a business expenditure/business loss, in the past.