Ajit K.Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1985-86, the following question of law has been referred to this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in cancelling the order of the Commissioner of Income-tax (Appeals) for modification of the order of the Assessing Officer in respect of the disallowance made under Section 37(3A) of the Income-tax Act, 1961, according to the correct interpretation of law ?"
(2.) The facts relating to this reference are that the Assessing Officer had excluded Rs. 2,56,286 on account of repairs, etc., of motor cars from the motor car expenses in calculating the disallowance under Section 37(3A) which amounted to Rs. 64,688.
(3.) At the time of passing the appellate order, the Commissioner of Income-tax (Appeals) enhanced the disallowance under Section 37(3A) of the Act. He directed the Assessing Officer to modify the assessment after making fresh calculation of actual disallowance under Section 37(3A) including Rs. 2,56,286.;