VIJAYAKUMAR MILLS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, as well as the Department, the Tribunal referred the following question of law for our opinion under sec 256(1) of the Income-tax Act, 1961.

(2.) QUESTION of the law referred at the instance of the assessee :

(3.) FOR the assessment year 1961-62, another Appellate Assistant Commissioner who dealt with this appeal held that there was an artificial inflation in the purchase price of cotton and the benefit went to Mr. G. Krishnan who was one of the directors of the assessee-company. The Appellate Assistant Commissioner further pointed out that the excessive rebate was made by the company with the full knowledge and connivance of the directors accordingly, the Appellate Assistant Commissioner upheld the addition made by the Income-tax Officer.