METHARAM LEKHUMAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference under s. 256(1) of the IT Act, 1961 (`the Act') is at the instance of the assessee to decide the following question :

(2.) THE relevant assessment year is 1974-75, for which the accounting period ended on 31st March, 1974. THE assessee is a partnership concern and its assessment was made in the status of an unregistered firm. THE Tribunal has upheld the view that the assessee is to be assessed in the status of an unregistered firm. This has given rise to the above quoted first question for our decision. THE other question arises out of the Tribunal's refusal to permit deduction of the expenses incurred in supply of meals, etc. THE assessee's expenditure on customers and constituents is an act of commercial expediency during the course of its business.