COMMISSIONER OF INCOME-TAX Vs. MAHESH CHAND

JUDGEMENT

(1.) This is an application under Section 256(2) of the Income-tax Act, 1961 (for short "the Act"), filed by the Commissioner of Income-tax, Lucknow, for a direction to the Income-tax Appellate Tribunal to draw up a statement of the case and to refer the question set out in the application for the opinion of this court.

(2.) The dispute relates to the assessment year 1979-80. Against the loss return of Rs. 9,145, the assessment was completed on a net taxable income of Rs. 81,042. The assessee appealed to the Appellate Assistant Commissioner of Income-tax who allowed the appeal and deleted the entire addition made by the Assessing Officer. On second appeal at the instance of the Revenue, the appellate order was upheld by the Income-tax Appellate Tribunal. The application under Section 256(1) of the Act filed by the Department having been dismissed, this application has been filed for the directions from this court, set out earlier.

(3.) The question proposed in the application reads as under :