COMMISSIONER OF INCOME TAX Vs. MOHAMMAD ISHAQUE GULAM

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act at the instance of the Revenue and the following questions of law have been referred by the Tribunal for the opinion of this court :

(2.) THE brief facts giving rise to this reference are that the assessee is a manufacturer of bidies. THE assessment order dated April 4, 1986, for the assessment year 1984-85, was considered erroneous and prejudicial to the interests of the Revenue by the Commissioner of Income-tax on the ground that the Assessing Officer did not take into account the expenses for advertisement and sales promotion and as such did not make disallowance in respect of those expenses under Section 37(3A) of the Income-tax Act, 1961. <FRM>JUDGEMENT_869_ITR232_1998Html1.htm</FRM>

(3.) THE Revenue then moved an application before the Tribunal for making reference and accordingly, the aforesaid questions of law have been referred by the Tribunal for answer of this court.