DIPTI TEXTILE INDUSTRIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) These are the references made under Section 256(2) of the Income Tax Act, 1961, by the Tribunal, D Bench, seeking opinion of this Court on the question of law arising from its orders dated 30-1-1991. The question referred reads as under:

(2.) The facts involved in both the applications are common, the issue involved is identical, so the single judgment will dispose of both the reference applications. However, for the sake of clarity the facts are borrowed from Ref. Appln. No. 345 of 1995.

(3.) The statement of the case reveals that assessee company derives income from business of hiring machinery and sale and purchase of yarn and fabrics. The assessee company filed a return of income for the assessment year 1983-84 declaring income of Rs. 1,20,300.