CIT Vs. CHITTARMAL RAM DAYAL

JUDGEMENT

(1.) THE Income -Tax Appellate Tribunal, New Delhi has referred the following question of law under section 256(1) of the Income -Tax Act, 1961, ('the Act'), for opinion to this court. 'Whether on the facts and circumstances of the case, the Appellate Tribunal was legally correct in holding that Explanation 2 inserted below section 40(b) of the Act w.e.f. 1 -4 -1985 is clarificatory and applicable to all pending assessments of earlier years also and deleting the disallowance made by the ITO under section 40(b) of the Income -Tax Act.'

(2.) THE present reference relates to the Assessment year 1983 -84.

(3.) WE have heard Sri Shambhoo Chopra, learned standing counsel. Nobody has appeared on behalf of the respondent -assessee.