COMMISSIONER OF INCOME TAX ASSAM TRIPURA MANIPUR AND NAGALAND Vs. RAMESHWARI LAL SANWARMAL

JUDGEMENT

(1.) Civil Nos. 1956-57 of 1969 by certificates have become infructuous as the certificates on the strength of which those appeals were brought were not properly issued. To get over that difficulty, the commissioner of Income-tax applied for and obtained special leave to appeal against the judgment of the High court of Assam and Nagaland. The appeals filed on the basis of the special leave granted are Civil nos. 1426 and 1427 of 1971. At present we are only concerned with those appeals

(2.) The judgment under appeal is one rendered in a reference under section 66 (1) of the Indian Income Tax Act ,1922 (to be hereinafter calledthe Act). The Income Tax Appellate tribunal after staling the case referred the following six questions for the opinion of the High court :

(3.) The High court has answered the first two questions in favour of the assessee and it did not go into the other questions as it opined, in view of the answers given to the second question, there was no need to answer the remaining questions. For the reasons to be presently stated, we have come to the conclusion that the answer given by the High court to the first question is correct and that given by it to the second question is wrong. As a result of our finding, the appeal relating to the assessment year 1955-56 viz. Civilappeal No. 1426 of 1971 has to be dismissed. But the appeal relating to the assessment year 1956-57 should be allowed and the case remitted to the high court for answering the questions that remain to be answered.