COMMISSIONER OF INCOME TAX Vs. FOJMAL RAJMAL CHHABRA

JUDGEMENT

(1.) HEARD learned counsel for the petitioner.

(2.) THIS is an application under Section 256(2} of the Income-tax Act, 1961, by the Commissioner of Income-tax, Jaipur, requiring this court to direct the Income-tax Appellate Tribunal to state the case and refer the following question said to be a question of law arising out of the Tribunal's order dated January 29, 1979 :

(3.) THE Tribunal held that the Appellate Assistant Commissioner was not justified in holding the gifts to be not genuine, particularly when the Gift-tax Officer has held the gifts to be genuine and gift-tax has also been paid on the said gifts. With this finding it was held that since the amounts in the names of the minors were actually utilised by the firm for its own purpose, the interest was paid for the purpose of carrying on the business and was then an allowable expense.