COMMISSIONER OF INCOME TAX Vs. ADITYA MILLS

JUDGEMENT

(1.) THE assessee -company runs a textile mill at Kishangarh, District Ajmer. For the asst. year 1972 -73, it claimed, inter alia, the following expenses : . Rs.

(2.) THE ITO disallowed the said expenses. On appeal, the AAC agreed with the ITO. The assessee preferred a further appeal to the Tribunal and the Tribunal allowed the expenses incurred in providing tea, cold drinks, etc., but disallowed the expenses on the maintenance of guest house. The Department preferred an application under S. 256(1) of the INCOME TAX ACT, 1961, before the Tribunal and the Tribunal has referred the following questions for the opinion of this Court :

(3.) AS regards question No. 2, it may be mentioned that this question was suggested by the assessee in his application before the Tribunal and the Tribunal thought it proper to refer this question as well. But since the application under S. 256(1) of the Act was preferred by the Department for referring question No. 1, the Tribunal was not competent to refer question No. 2 at the instance of the assessee on an application filed by the Department and the reference on that question must be considered to be void. Therefore, we refuse to answer that question.