SHANKERLAL DAYARAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference made by the Tribunal (hereinafter called the Tribunal) in compliance with the order of this Court passed under sub -s. (2) of s. 66 of the Indian IT Act (hereinafter called the Act).

(2.) THE questions of law referred to are as follows :

(3.) THE assessee is a bidi merchant. It claimed Rs. 96,574 by way of expenses for purchase of bidi leaves required for the manufacture of bidis in the asst. yr. 1947 -48. Out of this amount a sum of Rs. 21,403 was disallowed by the ITO on the ground that the alleged price was inflated.