Ajit Kumak Skngupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment years 1963-64 and 1964-65, 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 right in holding that the Income-tax Officer was not justified in including 50% of the managing agency commission from Messrs. Sutlej Cotton Mills Ltd., Pakistan, in the assessment of the assessee ?"
(2.) This question was concluded by the judgment dated December 17, 1974, Income-tax Reference No. 369 of 1970 (CIT v. Stria Bros. Private Ltd.--[1987] 165 ITR 588). Following the said decision, we answer this question in the affirmative and in favour of the assessee.
(3.) For the assessment year 1970-71, the Tribunal has referred the following two questions : "1. Whether on a correct interpretation of the provisions of Section 80-O of the Income-tax Act, 1961, and on the facts and in the circumstances of the case, the Tribunal was correct in holding that the provisions of Section 80-O of the Income-tax Act, 1961, requiring that the approval of the Central Government for the agreement with the foreign company shall be obtained before the 1st October of the relevant assessment year were merely directory in character and the approval accorded by the Central Government in the present case subsequent to that date on the application filed by the assessee prior to that date was sufficient compliance with the requirements of the statutory provision ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the assessee was entitled to the relief under Section 80-O of the Income-tax Act, 1961, although the approval of the Central Government for the agreement between the assessee-company and the foreign company was not accorded before the 1st day of October of the relevant assessment year ?";