Sabyasachi Mukharji, J. - (1.) This reference arises out of an assessment for the year 1967-68 under Section 256(1) of the I.T. Act, 1961, and the following question has been referred to this court: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the short-term and fixed bank deposits could not be included in the capital computation for the purpose of working out relief under Section 84 of the Income-tax Act, 1961, as it then stood, read with Rule 19(4) of the Income-tax Rules, 1962 ?"
(2.) The assessee is a limited company. For this assessment year one of the claims of the assessee-company was that the bank deposits should not be excluded from the capital computation for the purpose of working out the exemption under Section 84 of the I.T. Act, 1961, as it then stood. The ITO however, among other claims also, did not accept this claim. The assessee-company, being aggrieved by the aforesaid decision of the ITO, went up in appeal before the AAC. The AAC while giving relief on some other points, however, held that the short-term and fixed deposits in the bank should not have been excluded in making the capital computation for the purpose of determining the relief under Section 84 and partly allowed the assessee's appeal.
(3.) The revenue being aggrieved by the order of the AAC went up in appeal before the Appellate Tribunal. It appears that there was a difference of opinion between the Accountant Member and the Judicial Member on the issue whether the short-term and fixed bank deposits could be included in the capital computation for the purpose of working out relief under Section 84 of the Act as it stood at the relevant time. The President of the Tribunal was, thereafter, moved to refer the case for hearing by one or more members of the Appellate Tribunal as required under Section 255(4) of the Act on the following points of difference : "Whether, on the facts and in the circumstances of the case, the bank deposits should be left out of account in the computation of capital for the purpose of working out the relief under Section 84 of the Act, as it then stood, read with Rule 19(4) of the Income-tax Rules, 1962?";