COMMISSIONER OF INCOME-TAX VS ALLIED CHEMICALS CORPORATION
1999 P T D 3163
[236 I T R 304]
[Supreme Court of India]
Present: S. P. Bharucha and B. N. Kirpal, JJ
COMMISSIONER OF INCOME-TAX
Versus
ALLIED CHEMICALS CORPORATION
C. A. No 642 of 1979, decided on 06/02/1996.
Income-tax---
----Reference---Other sources---Deductions---Loss arising at time remittance of money to assessee whether deductible---Question of law-- Indian Income Tax Act, 1961, 9s.57 & 256.
Held, that the question whether the Tribunal was justified in holding that the amount representing a loss that arose to the assessee at the time of remittance of money to it was an allowable deduction under section 57(i) of the Income Tax Act, 1961, was a question of law.
B. B. Ahuja, Senior Advocate (S. N. Terdol and S. Rajappa, Advocates with him) for Appellant.
H. S. Parihar for Respondent.
ORDER
This is an appeal by special leave against the order of the High Court at Bombay, rejecting an income-tax application filed by the Revenue.
The Revenue, by the Income-tax application, asked the High Court to direct the Income-tax Appellate Tribunal to refer to it, under section 256(2) of the Income Tax Act, 1961, the following question:
"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the amount of Rs.34,575 representing a loss that arose to the assessee at the time of remittance of money to it was an allowable deduction undersection 57(i) of the Income Tax Act, 1961?" The High Court declined to do so, saying only, "rejected".
Plainly, the question sought to be referred is question of law concerning the interpretation of section 57(i) of the Income-tax Act and the High Court ought to have called for a reference from the Tribunal concerning it.
The appeal is allowed. The Tribunal is directed to refer the aforequoted question to the High Court under section 256(2) of the Act. there shall be no order as to costs.
M.B.A./3301/FCAppeal allowed.