COMMISSIONER OF INCOME TAX Vs. SWADESHI MINING AND MANUFACTURING CO LTD

JUDGEMENT

(1.) In this reference, on an application of the Commissioner of Income-tax, West Bengal-III, Calcutta, under Section 256(2) of the I.T. Act, 1961, this court directed the Tribunal to draw up a statement of case and refer the following questions for the opinion of this court as questions of law arising from its order :

(2.) It appears to us that question No. 1 is covered by a decision of this court in CIT v. Swadeshi Mining and Manufacturing Co. Ltd. Following the said decision, we answer the question in the negative and in favour of the assessee.

(3.) The facts relevant to the second question as found and/or admitted in these proceedings are shortly as follows : The assessee is a company engaged in the manufacture and sale of sugar and in the assessment year 1961-62, the corresponding accounting year being that ended on the 30th September, 1960, it carried on such activities.