- (1.) By this reference application under Section 256(2) of the Income-tax Act, 1961, the following question has been referred for our opinion : "Whether, on the facts and in the circumstances of the case and on a correct interpretation of the sale agreement, the Tribunal was correct in law in maintaining the order of the Commissioner of Income-tax (Appeals) in deleting the addition of Rs. 32,00,000 and Rs. 50,000 made by the Income-tax Officer under the head 'Business' and 'Other sources', respectively ?"
(2.) The assessee is a limited non-resident company. The assessment order for the assessment year 1981-82 was passed by the Income-tax Officer on March 27, 1986, estimating the business income of Rs. 32,00,000 against the returned income shown at nil. The Income-tax Officer has also made addition of Rs. 50,000 on own estimate basis as income from other sources. The order was passed under Section 144 of the Income-tax Act, 1961. In appeal before the Commissioner of Income-tax (Appeals) the assessee has submitted that the assets and liabilities of the assessee-company had been taken over by the Indian company as per agreement and that agreement has been approved by the Reserve Bank of India on April 30, 1982, with effect from January 1, 1978.
(3.) As the approval of the Reserve Bank of India has not been given by the Reserve Bank of India, in the relevant previous year, the Income-tax Officer did not accept the transfer effective on the basis of the agreement and assessed the income from the tea garden in the hands of the assessee.;