SIRUR N AND CO PVT LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee the following question has been referred to us for our determination by the Tribunal :

(2.) THIS reference relates to four assessment years which are referred to in the question. For the asst. yrs. 1959 60 and 1960 61 the assessments were reopened under S. 147 of the IT Act, 1961, and the appeals which came before the Tribunal were after the reopened assessments were dealt with on appeal by the AAC. For the asst. yrs. 1961 62 and 1962 63, the CIT had passed orders under S. 33B of the Indian IT Act, 1922, and S. 263 of the IT Act, 1961. The appeals before the Tribunal arose out of these orders and in all these years the common question that arose for consideration was whether the amounts paid to the widow of the managing director was allowable as a deduction.

(3.) SUB cl. (ii) of cl. 14 provided for payment of certain amounts there in mentioned to the heirs, executors and administrators of the managing director in the event of the wife of the managing director predeceasing him during the currency of the agreement.