COMMISSIONER OF INCOME TAX Vs. NIRMAL COMMERCIAL LIMITED

JUDGEMENT

(1.) IT Ref. No. 1 of 1982 has been made by the Tribunal under S. 256(1) of the IT Act, 1961 both at the instance of the Revenue and the assessee. It pertains to asst. yrs. 1971 72 and 1972 73.

(2.) THE following three questions have been referred at the instance of the Revenue:

(3.) THE said References came up before the Division Bench consisting of learned Brothers Dr. B.P. Saraf and D.R. Dhanuka, JJ. of this Court. The Division Bench on consideration of the References in the background of the facts and circumstances of the case and various authorities placed by the counsel of both the sides, felt that for a proper determination of various legal issues arising in the case it was necessary to scrutinise some of the legal propositions already laid down by some of the Division Benches of this Court, more particularly in cases referred to in CIT vs. Mahendra J. Shah (1979) 118 ITR 902 (Bom), CIT vs. Shah Construction Co. Ltd. (1982) 30 CTR (Bom) 245 : (1983) 142 ITR 696 (Bom) and the assessee's own case Shree Nirmal Commercial Ltd. vs. CIT reported in (1991) 96 CTR (Bom) 54 : (1992) 193 ITR 694 (Bom), and to take fresh decision in case some of these decisions were felt to be in conflict with others, it was necessary to refer the matter to a larger Bench. They were also of the opinion that the decision in the case of the assessee itself needs reconsideration in the light of the Supreme Court decision, earlier decision of this Court and the provisions of the IT Act, TP Act, Registration Act, etc. The Division Bench, therefore, without expressing any opinion on merits of the rival contentions of the parties directed that the Hon'ble Chief Justice be moved for forming a Full Bench for the decision of these two References. Accordingly two References are placed before us after obtaining necessary orders from the Hon'ble Chief Justice.