GIRDHARILAL BAGADIA Vs. ADDITIONAL COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE order in this case will also govern the disposal of Miscellaneous Civil Case No. 245 of 1976.

(2.) THE following two questions of law have been referred to us by the Income-tax Appellate Tribunal, Indore Bench. Initially, the Tribunal had referred the following question to the court for its opinion:

(3.) HAVING heard learned counsel for the parties, we have come to the conclusion that these references have to be answered in favour of the asses-see and against the Revenue. It is now well-settled that for the applicability of the provisions of Section 41(1) of the Act, the assessee getting an amount or benefit must be the same assessee who had got advantage of the allowance or deduction earlier. In CIT v. Hukumchand Mohanlal [1967] 64 ITR 341, it was held by this court that the assessee made liable under Section 41(1) of the Act must be the same assessee to whom art allowance had been granted earlier. This decision was approved by the Supreme Court in CIT v. Hukumchand Mohanlal [1971] 82 ITR 624.