SARVAJANIK SEWA SAMAJ Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question of law referred in this reference under s. 256(1) of the IT Act, 1961, is as follows:

(2.) THE reference relates to the asst. yrs. 1973-74 and 1974-75. It appears that both the parties appealed against the order of the AAC sustaining some of the disallowances and vacating the other disallowances. THE Tribunal held that from the statement of account as submitted by the asessee, it was not clear as to what is the financial position in respect of the exempt and non-exempt activities separately. It further held that in the absence of such clear-cut demarcation of the accounts between the two types of activities, it was not possible to determine whether the assessee was entitled to the claims which it has made in respect of the various items which have either been sustained or vacated by the AAC. On this finding, the Tribunal set aside the order of the AAC and remanded the case for fresh assessment to the ITO.