HMM LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Tribunal, Chandigarh Bench, has referred the following questions of law for the opinion of this Court under s. 256(1) 1985, in ITA Nos. 737/Chd/1982, 271/Chd/1983 and 275/Chd/1983 :

(2.) RE : Q. No. (1) (by the Revenue)

(3.) LEARNED counsel for the assessee relies on the judgment of the Hon'ble Supreme Court in CIT vs. Mafatlal Gangabhai & Co. (P) LTD. (1996) 132 CTR (SC) 248 : (1996) 219 ITR 644 (SC) : (1996) 7 SCC 569 : AIR 1996 SC 3003, particularly in paras 12 to 14 (of the SCC), holding that cash payments made to the assessee were not covered by the expression "expenditure" under s. 40A(5) or under s. 40(c) of the Act.