HARDIALLIA CHEMICALS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under S. 256(1) of the IT Act, 1961, made at the instance of the assessee. the Tribunal, Bombay 'C' Bench, Bombay, has referred the following questions of law to this Court for opinion :

(2.) COUNSEL for the parties are agreed that questions Nos. 1 and 2 are covered by decisions of this Court in favour of the Revenue and they should be answered accordingly. Question No. 1 is covered by the decision of this Court in Carona Sahu Co. Ltd. vs. CIT (1995) 123 CTR (Bom) 497 : (1995) 213 ITR 106 (Bom). Following the same it is answered in the affirmative and in favour of the Revenue. Question No. 2 is covered by the decision of this Court in CIT vs. Sandoz (India) Ltd. (1994) 120 CTR (Bom) 38 : (1994) 206 ITR 599 (Bom) : TC 14PS.16. Following the same it is also answered in the affirmative and in favour of the Revenue.

(3.) THE only questions that require our consideration are questions Nos. 3 and 4. The material facts having a bearing on the determination of question No. 3 are as follows :