At the instance of the applicant-assessee, the following question of law has been referred to this court for its opinion by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C' under the provisions of sec. 256(1) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). "Whether, on the facts and in the circumstances of the case the provisions of sec. 40(b) of the I.T. Act 1961 were rightly applied in the assessee's case?
2.Learned advocate Shri R.K. Patel has appeared for the applicant and learned advocate Shri B.B. Naik has appeared for the respondent-revenue.
3.Our attention has been drawn to the judgment delivered by this court in I.T.R. No. 22/86 dated 19th July 2001 wherein a similar question of law had been referred to this court.
4.Looking to the law laid down by this court in the said judgment, we answer the question referred to us in the affirmative i.e. against the assessee and in favour of the revenue.
The reference thus stands disposed of with no order as to costs.
(A.R. Dave, J.) (D.A. Mehta, J.) (hn)