(1.) We have heard Sri R.K. Upadhyay for the department. Sri Shakeel Ahmad appears for the respondent-assessee.
(2.) The Income Tax Appellate Tribunal, Allahabad has referred the following, two questions of law under section 256 (1) of the Income Tax Act, 1961 (the Act), for opinion to this Court.
(3.) Brief facts, as stated in the reference are as follows:-