Satish Chandra, C.J. - (1.) This reference relates to the years 1969-70 and 1970-71. For both these years the Tribunal has referred the following question of law for our opinion: " Whether, on the facts and in the circumstances of the case, having held that the assessee was not carrying on any business, the Tribunal was legally correct in allowing the entire expenses of Rs. 11,295 in the assessment year 1969-70, and Rs. 10,613 in the assessment year 1970-71, except in so far as it can be related to the income from property ?"
(2.) The assessee is a public limited company. It carried on business of manufacture and sale of wooden bobbins. That business was discontinued some time in the year 1951. Its stocks, however, remained which were being sold as and when customers were available and the balance was carried forward from year to year. In the accounting year 1968, the stock in hand was Rs. 5,060 while in the accounting year 1969, the stock in hand was reduced to Rs. 4,856. In the year 1969-70, the assessee filed a return showing an income of Rs. 3,839 as interest and Rs. 7,200 as receipts by way of rent. Similarly, for the year 1970-71, it filed a return showing an income of Rs. 3,721 as interest and Rs. 7,200 as rent.
(3.) It claimed expenses of Rs. 11,295 for the assessment year 1969-70 and Rs. 10,613 for the assessment year 1970-71.;