- (1.) HEARD learned counsel for the applicant. In our opinion, question No. 5 as stated by the applicant in this application is a statable question of law. We, therefore, direct the Income-tax Appellate Tribunal to draw up a statement of the case and refer the following question to us for the opinion of this court : Question : Whether, on due consideration of the fact that Messrs. Garg Financiers was a separate, independent and genuine entity, it was legally correct for the Tribunal to say that the payment made to the said entity on the credit balance as undisputedly appearing in their account to the extent of Rs. 51,920 represented payments made to the partners and as such the sum of Rs. 51,920 was disallowable under Section 40(b) of the Income tax Act, 1961?"
(2.) THE application is, accordingly, allowed.;