COMMISSIONER OF INCOME TAX Vs. MULCHAND BAGRI

JUDGEMENT

(1.) THE following question of law has been referred to this Court by the Tribunal under s. 256(1) of the IT Act, 1961 :

(2.) THE assessment year involved is the asst. yr. 1978-79, for which the relevant period of account is the financial year 1977- 78. This reference arose from an order passed by the CIT under s. 263 of the IT Act.

(3.) THE assessee gave his answer to the show cause notice issued by the Commissioner. After hearing, the Commissioner held as follows :