COMMISSIONER OF INCOME TAX Vs. DHANPATRAM CHHOTELAL

JUDGEMENT

(1.) A statement of the case has been submitted by the Commissioner of Income-tax, Bihar-II, Ranchi Bench, under Section 256(1) of the Income-tax Act, 1961, and the following question has been referred for the opinion of this court;

(2.) LEARNED counsel appearing for the parties are agreed that in similar circumstances and more or less on identical facts, this court had taken a view in favour of the Revenue in Taxation Case No. 49 of 1980 (CIT v. Baldeo Choudhary Vijay Kumar--[1988] 172 ITR 453 (Patna)). That judgment, in its turn, was based upon a judgment of a Full Bench of this court in Jamunadas Mannalal v. CIT [1985] 152 ITR 261 wherein the Full Bench had held as follows (p. 289):