COMMISSIONER OF INCOME TAX Vs. WILLARD INDIA LIMITED

JUDGEMENT

(1.) THIS is an application under S. 256(2) of the IT Act, 1961, filed on behalf of the Department to direct the Tribunal to draw up a statement of case and refer the following questions of law :

(2.) THE assessee is a public limited company and manufacturer of jute bags and automobile batteries. The assessment proceedings were taken for the year 1985 -86. The assessee claimed certain deductions, which were allowed by the Tribunal. The Department filed an application under s. 256(1) of the Act for referring the questions of law framed above. The Tribunal has already referred questions Nos. 2 and 3 to this Court vide order dt. 4th Feb., 1998. It is not necessary in these circumstances to ask the Tribunal to refer those questions.

(3.) THIS Court interpreted this provision in CIT vs. Kohli Khan Bhandar (1978) 111 ITR 419 (All) and held that the assessing authority has to consider the facts and circumstances before applying the provisions of S. 40A(3) of the IT Act.