STERLING MACHINE TOOLS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following question of law for our opinion :

(2.) IN view of the arguments advanced in the reference, it is necessary to refer to the reference application moved before this court, and the orders passed thereon. The assessee had moved a reference application before the Tribunal praying for the reference of a number of questions, but the Tribunal referred only one question, which forms the subject-matter of I.T.R. No. 162 of 1978. The question referred by the Tribunal in that reference is whether the Tribunal was right in law in holding that no appeal lay to the AAC under Section 246(c) of the I.T. Act, 1961, against the assessment relating to the addition of Rs. 32,529 to the machine account of the assessee when the assessment in that regard was made on an agreed basis. Thereafter, the assessee moved an application before this court praying for a reference of the following questions:

(3.) THE letter of the assessee being a voluntary one, and the assessee having agreed to the costs of the machine being worked out on the basis of the report of the experts' board, the ITO was justified in working out the profit on the sales of these machines by deducting the cost price as worked out by the experts from the sale price.