GAJENDRA NARAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Income-tax Appellate Tribunal, Patna Bench, referred to this court the following questions of law for the assessment years 1976-77 and 1977-78 for its opinion under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as the "Act") :

(2.) EARLIER we had heard the matter on September 9, 1996, and at that point we were of the opinion that there being no evidence that the assessee gave the loan to the Hindu undivided family, the first question did not arise and the others being academic did not require any answer on the facts of the case. However, while writing the judgment we felt that the matter needs further consideration. Accordingly, we were of the opinion that since the other matters appertaining to the assessee were also listed, this matter could be decided afresh,

(3.) MR. Rastogi, counsel appearing for the Revenue, also does not contest this point that the loan could have been so advanced by the assessee to the Hindu undivided family. Once we come to the conclusion that the assessee could have given the loan aforesaid to the Hindu undivided family, the first question has to be answered in the negative, in favour of the assessee and against the Revenue.