COMMISSIONER OF INCOME TAX Vs. RAMCHAND KUNDANLAL SARAF

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as " the Act").

(2.) THE following question has been referred to this court by the Income-tax Appellate Tribunal for decision:

(3.) BEFORE we proceed to deal with this reference, it would be pertinent to take note of the amendment of Section 271 of the Act, which came into effect from April 1, 1968. We are primarily concerned with the amendment in Sub-clause (iii) of Section 271(1)(c) and the relevant part of the section as it stood before and after the amendment is reproduced below :