HASIMARA INDUSTRIES LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The following question of law has been referred by the Tribunal under Section 256(2) of the Income-tax Act, 1961 :

(2.) The facts of the case are set out in detail in the judgment that has been delivered in the assessee's own case being Income-tax Reference No. 100 of 1977 ; CIT v. Hashimara Industries Ltd.

(3.) In this reference, the dispute is about the allowability of a sum of Rs. 20,00,000 given by way of advance to Saksaria Cotton Mills Limited for modernisation of its plant. The assessment year involved is 1968-69 for which the previous year ended on March 31, 1968.