COMMISSIONER OF INCOME TAX Vs. BIMETAL BEARINGS LIMITED

JUDGEMENT

(1.) AT the instance of the Revenue, the Tribunal referred the following question under section 256(1) of the Income-tax Act, 1961, for our opinion :

(2.) THE assessee is a company. THE assessment for the assessment year 1977-78 was completed on April 16, 1979, determining the total income at Rs. 1,37,62,220. While completing the assessment, the Income-tax Officer disallowed a sum of Rs. 16,000 being the settling allowance paid to the employees in connection with the shifting of the factory building. On appeal, the Commissioner of Income-tax (Appeals), following an earlier order of the Tribunal in the case of the same assessee for the assessment year 1974-75 held that the shifting allowance paid to the employees should be allowed as a deduction. On further appeal, the Tribunal confirmed the order passed by the Commissioner of Income-tax (Appeals).