COMMISSIONER OF INCOME-TAX Vs. GURUPADA DUTTA

JUDGEMENT

(1.) Order OF REFERENCE BY THE INCOME-TAX APPELLATE TRIBUNAL.

(2.) The Commissioner of Income-tax, Bengal, by his petition dated 11 February 1942, has asked us to refer to the High Court the following question of law as arising out of the Order of the Appellate Tribunal in appeal R. A. A. No. 10 of Bengal of 1941-42. Whether the rate imposed under the provisions of the Bengal Village Self- Government Act, 1919, on a person occupying a building within the union and using the same for the purpose of business is an allowable deduction in computing the profits of the business under Section 10, Income-tax Act.

(3.) The respondent was required by the rules of the Tribunal to file his reply to the application. He has filed his reply and he objects to the reference on the ground that the question of law formulated does not arise. In the arguments addressed to us at the time of hearing, the counsel appearing for the respondent tried only to justify our Order on the ground that the Order is legally right. The counsel failed to show why the question formulated is not a question of law. The question formulated is so obviously legal that we did not consider it necessary to hear the applicant under Rule 52 of the Tribunal Rules and a notice was issued to the respondent to file his objection, if any. By an Order dated 9 December 1941, this Bench of the Income-tax Appellate Tribunal decided that the sum of Rs. 84 claimed as an expense by the assessee was an allowable deduction in computing the profits. The necessary facts in connexion with this allowance may be mentioned: