HOPE INDIA LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1963-64, the following questions of law have been referred to this court :

(2.) Against the aforesaid order of the Commissioner of Income-tax (Appeals) for the assessment year 1966-67, the assessee came up in appeal before the Tribunal and made two submissions. The first submission was that the cost shown by the assessee-company was reasonable. The second argument of the assessee was that the total addition could not be made in the assessment year 1966-67 and that the addition should be spread over the years during which the construction took place. The first objection of the assessee was negatived by the Tribunal. However, the Tribunal accepted the second argument and maintained an addition of Rs. 70,231 for the assessment year 1966-67. The Tribunal also directed that proportionate addition should be made in respect of other years.

(3.) The Tribunal recorded as follows :