COMMISSIONER OF INCOME TAX Vs. HINDUSTAN HOSIERY INDUSTRIES

JUDGEMENT

(1.) BY this reference under S. 256(1) of the IT Act, 1961, the Tribunal has referred the following question of law to this Court for opinion :

(2.) THE assessment year concerning this reference is 1978 79.

(3.) WE have gone carefully through the orders of the Tribunal, the CIT (A) and the ITO. It is not possible to accept the submission of learned counsel for the assessee that the expenditure in question was incurred in relation to the business of the assessee firm. We have no hesitation in recording our conclusion to the fact that the expenditure incurred by the assessee has no nexus with the business of the assessee. We agree with the conclusion arrived at by the ITO and the CIT (A).