COMMISSIONER OF INCOME TAX Vs. NATIONAL COMPANY LTD

JUDGEMENT

(1.) In this reference under Section 256(2) of the Income-tax Act, 1961, for the assessment year 1963-64 at the instance of the Commissioner, the following question of law has been referred to this court ;

(2.) Before the Tribunal, this action was contested. It was urged that such a source of income had not appeared in the accounts maintained or in the return filed and neither had it been mentioned or considered by the Income-tax Officer in his assessment order and, therefore, the action of the Appellate Assistant Commissioner was without jurisdiction and beyond the powers conferred under Section 251 of the Income-tax Act, 1961,

(3.) The Tribunal held that the observations made by the Supreme Court in CIT v. Rat Bahadur Hardutroy Motilal Chamaria, squarely applied to the facts and circumstances of this case in relation to Section 251 of the Income-tax Act, 1961, and, therefore, the action of the Appellate Assistant Commissioner was not tenable and was unsup-portable. The addition sustained by him was thus deleted.