COMMISSIONER OF INCOME-TAX Vs. J K BANKERS

JUDGEMENT

(1.) This is an application filed by the Commissioner of Income tax (Central) Kanpur, under Section 256(2) of the Income-tax Act, 1961, relating to the assessment year 1979-80 with a prayer that a direction be issued by this court to the Income tax Appellate Tribunal to draw up a statement of the case and refer the following question for the opinion of this court : "Whether in law and on the facts of the case, the Income tax Appellate Tribunal was justified in arriving at a conclusion that only net amount paid by the firm to a partner after adjusting interest paid by him to the firm should be disallowed under Section 40(b) of the Income-tax Act, 1961, irrespective of the fact that the amount of interest is received by him in a capacity other than a capacity in which he paid interest to the firm of which he is partner in the firm ?"

(2.) We have hoard learned standing counsel for the Department and Sri R. S. Agarwal, appearing for the assessee opposite party.

(3.) The question sought to he raised by this application is squarely covered by the decision of the Supreme Court in Keshavji Ravji and Co. v. CAT [1990) 183 ITR 1. The view taken by the Tribunal being in consonance with the view taken by the Supreme Court, the question sought to be referred is wholly academic and, in our opinion, no statable question of law arises.