PINKY AGENCIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee has filed this application under Section 256(2) of the Income-tax Act, 1961, for calling for the statement of case from the Income-tax Appellate Tribunal on the following two questions for opinion of this court :

(2.) IT appears that the assessee was an agent/dealer engaged in the sale of "bidis". He said to have incurred some advertisement expenditure which was disallowed on the ground that he was not required to do so being the sub-agent/dealer. After his plea was turned down by the forums including the Tribunal, he applied for seeking reference under Section 256(1) which was also rejected. That is how he filed this application under Section 256(2) contending that once it was accepted by the Revenue that he had incurred the requisite expenditure on advertisement, it was not for the Revenue to proceed further and examine whether he had rightly or wrongly done so. IT is also submitted that the issue was covered by some Supreme Court judgment and despite that his application for reference was rejected.