GANGA MEDICAL TRUST Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE questions referred to us are :

(2.) THE assessment years are 1989-90 and 1990-91. THE assessee is a trust. It carries on a business in which it incurred loss. However, it had income from other activities. THE Assessing Officer imposed the maximum marginal rate of tax of the total income on the ground that the assessee was engaged in business. THE assessee sought for rectification of the order on the ground that there was an error apparent on the face of the record, inasmuch as Section 161(1A) refers to "income" and "loss" cannot be regarded as "income". That application was rejected and the rejection confirmed in appeal. THErefore, the assessee approached the Tribunal which held that the interpretation of Section 161(1A) was a debatable matter and that Section 154 could not be invoked to deal with such matter.