COMMISSIONER OF INCOME TAX Vs. SHASALI CLOTH STORES

JUDGEMENT

(1.) THE applicant (Commissioner of Income-tax, Bhopal), has filed this application under Section 256(2) of the Income-tax Act, 1961 (for short "the Act"), seeking a direction to the Tribunal to state the case and to refer the question, as extracted below, arising out of the order passed on June 14, 1993, in I. T. A. No. 115/Ind of 1989 on rejection of the application presented under Section 256(1) of the Act registered as R. A. No. 109/Ind of 1993 on March 18, 1994, for the assessment year 1987-88, for our consideration and opinion :

(2.) BRIEFLY stated, the facts of the case are that on examination of the books of account, the Assessing Officer took the view that the assessee had split the items of payment exceeding Rs. 2,500 and made payment in cash two or three times. He, therefore, disallowed such payments totalling Rs. 1,56,253 under Section 40A(3). On appeal, the Commissioner of Income-tax (Appeals), confirmed this disallowance. The Tribunal, however, deleted the disallowance holding that the provisions of Section 40A(3) were not applicable. Aggrieved, the applicant filed an application under Section 256(1) of the Act. That application was rejected on March 18, 1994. Thereafter, the applicant has filed this application under Section 256(2) of the Act proposing the aforesaid question for direction.

(3.) MARCH 31, 1969, is the date specified, vide Notification No. S.O. 623, dated February 14, 1969 (see [1969] 71 ITR (St.) 93) (see Taxman's Direct Taxes Circulars, 1994 edn., vol. I, page 1,739).