M.R.SHARMA,J. - (1.) IN this petition under s.256 (2) of the IT Act, 1969 (hereinafter referred to as 'the Act') a prayear has been made that we should issue a direction to the IT Tribunal, Amristsar Bench, to state the case and to refer to us the follwing question of law for our opinion : "Whether, on the facts and circumstances of the case, when income from property has been separately assessed and no loan, in cash has been advanced by the assessee to New Suraj Transport Co. (P) Ltd. and only transfer entries has been passed whereby New Suraj Transport Co. (P) Ltd., has been debited by the assessee with Rs. 1,29,450/- representing the sale consideration of the property in question sold as per sale dt. 25th April, 1974, Rs. 15,534/- assessed under the head interest could be legally assessed as income of the assessee ?"
(2.) THE assessee is a private limited company and income from business in financing and also runs a chit fund. The assessee purchased three-fourth share in a building in Delhi on 13th March, 1976. This building was let out to its sister concern New Suraj Transport Co. (P) Ltd., on a rent of Rs. 1,800/- per month. The assessee claims that it sold in 1969 the building to the sister concern by making book entries. These entries read as under: The entries in the books of accounts of the Vendor. For the asst. yr. 1971-72 the ITO, Amritsar, made an assessment against the assessee. He came to the conclusion that since the transfer of the building in the name of the sister concern had not been made under registered sale deed till the close of the accounting period, the building would not be deemed to have been transferred to it. Accordingly he held the assessee as the owner of the building and included Rs. 18,000/- towards the total income of the assessee for notional use of this building. He also included therein interest on the sale consideration amounting to Rs. 15,534/- which it had charged from the sister concern on the loan advanced to it according to the book entries.
(3.) AGGRIEVED by this order, the assessee filed an appeal before the AAC, who also took the same view and dismissed the appeal. Second Appeal filed by the assessee before the Tribunal met with the same fate. The application made by the assessee for referring the above mentioned question of law to us for our opinion was dismissed by the Tribunal. Hence the present application.;