COMMISSIONER OF INCOME TAX Vs. BHARAT BHANDAR

JUDGEMENT

(1.) COMMISSIONER of Income-tax, U. P., has made this application under Section 256(2) of the Income-tax Act, 1961.

(2.) THE assessee in this case is a registered firm, Messrs. Bharat Bhandar. In the assessment year 1963-64, the assessee gave donations amounting to Rs. 15,530. It also derived income from a newly set up industry. THE assessee claimed that it was entitled to rebate in respect of the aforesaid items, under Sections 88 and 84 of the Income-tax Act, 1961. THE Income-tax Officer made an order holding that the assessee was entitled to claim rebate tinder Section 84 of the Income-tax Act 1961, and was entitled to an exemption of tax on a sum of Rs. 13,303 on this account. THEreafter, he proceeded to apportion the amount of exemption under Section 84 in the hands of individual partners. He apportioned the total donation of Rs. 15,530 also in the hands of individual partners. THE Income-tax Officer, therefore, did not actually allow the rebate under Section 88 and relief under Section 84 of the Act to the assessee.

(3.) THE Commissioner of Income-tax then moved an application under Section 256(1) of the Income-tax Act requesting the Tribunal to refer the question about the right of the assessee to claim exemption and relief under Sections 84 and 88 of the Act for the opinion of this court. THE Tribunal rejected the application on the ground that the language used in Sections 84 and 88 was quite clear and unambiguous. THE assessee was clearly entitled to the benefits under the two sections as claimed by it. THE Commissioner of Income-tax has now made the present application and has prayed that the Tribunal should be required to state a case on the following question of law :