COMMISSIONER OF INCOME TAX Vs. BHAWANI TEXTILES

JUDGEMENT

(1.) THIS reference under Section 256(1) of the Income tax Act, 1961, involves the following question of law :

(2.) THE reference relates to the assessment year 1977-78. For answering the question referred by the Tribunal, it is not necessary to deal with the facts of the case since the issue at hand is no more res integra and stands conclusively decided by the Supreme Court in the case of Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308, wherein it has been held that (at page 356) :