COMMISSIONER OF INCOME TAX Vs. D.N. BHARGAVA

JUDGEMENT

(1.) THE Tribunal, Allahabad has referred the following question of law under s. 27(1) of the WT Act, 1957, hereinafter referred to as the Act for opinion to this Court : "Whether on the facts and in the circumstances of the case, the Tribunal was in law justified in holding that the claim of the assessee for deduction under s. 5(1)(xxxii) of the WT Act, was allowable -

(2.) THE assessment year involved is 1982 -83. The assessee who is an individual claimed exemption as per provisions of s. 5(1)(xxxii) of the Act, in respect of the investment made in the firm M/s Bhargava Engineering Corpn. on the ground that the said firm has been held as industrial undertaking by the Tribunal. The claim was not allowed by the WTO, simply on the ground that the Department has not accepted the decision of the Tribunal. However, in appeal the CIT(A) allowed the claim and has directed the AO to allow exemption in respect of the investment in M/s Bhargava Engineering Corpn. This order has been confirmed by the Tribunal.

(3.) HEARD Sri Shambhu Chopra, learned standing counsel for the Department. None appeared for the assessee.