COMMISSIONER OF INCOME TAX Vs. NAVNITLAL M MEHTA

JUDGEMENT

(1.) THIS is a reference under Section 66(1) of the Income-tax Act, 1922, at the instance of the Commissioner of Income-tax, Madhya Pradesh,

(2.) THE question referred to this court for decision is:

(3.) SO far as this court is concerned, the view expressed by the Bombay High Court in Commissioner of Income~tax v. Gokuldas Harivallabhdas has been followed in Commissioner of Income-tax v. Punjabhai Shah, 1968 67 ITR 337 M.P. in preference to that of the Allahabad High Court in Lalchand Gopaldas's case and that of the Madras High Court in P. K. Kalasami Nadar's case. The view in Gokuldas Harivallabhdas's case has been affirmed by the Gujarat High Court in Commissionar of Income-tax v. L. H. Vora, as also by the Calcutta High Court in Commissioner of Income-tax v. Anwar Ali, 1967 65 ITR 95 Cal. where the Allahabad and Madras views have been dissented from.