COMMISSIONER OF INCOME TAX Vs. MOTOR SALES LTD

JUDGEMENT

(1.) The Tribunal, Allahabad Bench, Allahabad, has referred the following five questions of law under Section 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act"), for opinion to this Court:

(2.) Whether the Tribunal was justified in law in holding that the accretion in contingency account No. II could not be brought to tax as trading receipt in spite of the fact that the actual sales-tax liability in respect of completed transactions had been duly provided for by transfer from the aforesaid amount?

(3.) Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that the sale of vehicles under the hire-purchase agreement is concluded only when the terms of agreement are fully complied with by the hirer or option to purchase is exercised?