- (1.) These appeals impugn the correctness of two judgments of the High Court, one dismissing an application under Section 256(2) of the Income-tax Act, 1961, for referring a question of law pertaining to the assessment year 1988-89 and the other, dismissing an appeal under Section 260A of the Income-tax Act pertaining to the assessment year 1990-91.
(2.) By an application under Section 256(2) of the Act the Revenue sought a direction to the Tribunal for reference of the following question of law : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is justified in holding that the agricultural income will not form a part of total income for the purpose of computing the accumulation of income in excess of 25 per cent, of the total income as laid down under Section 11 of the Income-tax Act, 1961."
(3.) The main reason why the Revenue sought this question of law to be referred for the opinion of the High Court was because there was a conflict of views on this question between the view expressed by the Allahabad High Court in CIT v. Panchaiti Akhara Nirmal, 1991 192 ITR 186 and the view expressed by the Madras High Court in Silasri Kasivasi Muthukumaraswami Thambiran v. Agrl. ITO, 1978 113 ITR 889.;