COMMISSIONER OF INCOME TAX Vs. DIGVIJAY TEXTILES

JUDGEMENT

(1.) THIS is an application under Section 256(2) of the Income -tax Act, 1961, preferred by the Commissioner of Income -tax, Jodhpur.

(2.) THE Assessing Officer allowed the following expenses which were shown in the return of income of the assessee -Digvijay Textiles, Jodhpur : Rs.'(1) Advertisement expenses12,454(2) Commission paid to selling agent5,17,107(3) Sales incentive96,060(4) Cash discount8,99,490Total15,25,111.'

(3.) THE Revenue thereafter moved the Tribunal for making a reference under Section 256(1) of the Income -tax Act, but the Tribunal rejected the reference application holding it, inter alia, to be basically a question of fact. The Commissioner of Income -tax hereafter makes a reference application on the following amongst other questions :