- (1.) Following question of law has been referred for the opinion of this Court by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for short, 'the Tribunal') in I.T.A. No. 1449(ASR)/1989, for the assessment year 1988-89: Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in upholding the order of the Deputy Commissioner of Income-tax (Appeals) allowing expenses of Rs. 61,223/- disallowed by the Assessing Officer
(2.) The assessee filed return declaring his income at Rs. 28,824/- on 12.7.1988. The main line of business of the assessee was rice husking. The Assessing Officer disallowed the expenses considering that no business was carried out by the assessee during the year in question and the same was closed.
(3.) The Deputy Commissioner of Income-tax (Appeals) held that during the assessment year 1987-88, the assessee received a sum of Rs. 12,797/- from F.C.I. towards milling charges. It was also noticed that a sum of Rs. 70,946.80 was received as milling charges during the assessment year in question from District Food and Supplies Controller, Jalandhar, as such the business was continuing and accordingly, order passed by the Assessing Officer was reversed.;