Commissioner of Income Tax vs Modi Industries Ltd.

B.N. Kirpal, J.—In respect of the assessment year 1979-80, the petitioner seeks reference of the following questions to this court :

"(1) Whether, on the facts and in they circumstance of the case, the Income Tax Appellate Tribunal was correct in law in restriction the disallowance of expenses incurred on the guest house at Jindal House, Calcutta, to Rs. 21,043 only ?

(2) Whether. On the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in law in holding that the amount of Rs. 1,69,060 representing the sum received under the Government orders for adequate storage facility for molasses could not be taken as income ?"

In Income Tax Case No. 20 of 1986 decided today, we have held that question No. 1 is a pure question No. 1 to this court. We however, direct the Tribunal to state the case and refer the following question of law to this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the amount of Rs. 1,69,060 representing the sum received under the Government orders for adequate storage facility for molasses not be taken as income ?"

There will no order as to costs.