COMMISSIONER OF INCOME TAX BOMBAY Vs. HENLY FARM

JUDGEMENT

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

(2.) THE facts which are relevant for the purposes of this reference are as under :-

(3.) WE have heard the learned counsel appearing for both sides. The controversy in this question is concluded by the ratio of the decision of this Court in C. I. T. vs. Deejay hatcheries, (1995) 211 ITR 652 (Bom.) which is since approved by the Supreme Court in C. I. T. vs. Venkateshwara hatcheries, (1999) 237 ITR 174. In Deejay Hatcheries case (supra) this Court after considering the relevant provisions of Income Tax Act observed as under :-