SAH ROOP NARAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under s. 256(2) of the IT Act, 1961 (hereinafter referred to as the Act) praying for a direction to the Tribunal to draw a statement of the case, and to refer the following question of law. :

(2.) PETITIONER is an HUF and owns a house named `Roop Mahal' at Mount Abu. Most of it was in use and occupation for the residence of the members of the family. This property was sold along with the furniture and fixtures to the State Bank of Bikaner and Jaipur on 27th Aug., 1976 for a sum of Rs. 2,20,000. The petitioner incurred a sum of Rs. 2,520 in travelling and other legal expenses and claimed as deduction under s. 48(i) of the Act, but the same was disallowed by the ITO. On appeal, the CIT (A) partly accepted the contention of the petitioner and allowed the relief for Rs. 550 out of expenditure on legal fee but did not allow other reliefs. On further appeal, the Tribunal rejected the contentions of the petitioner and dismissed the appeal., The petitioner preferred an application for reference under s. 256(1) of the Act, before the Tribunal for referring the above questions. The learned Tribunal made out a draft statement of the case on 16th Sept., 1981 and referred two questions to the High Court. Suggestions on the draft statement were sought, and after hearing the parities, the Tribunal finally while drawing the statement of the case, referred only question No. 1 and question No. 4 though proposed to be referred by the draft statement, was not ultimately referred to the High Court. Hence the petitioner has moved this application under s. 256(2) of the Act.