TMI Blog1994 (9) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... /Del/85, pertaining to the assessment year 1977-78: " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in confirming the deletion by the Commissioner of Income-tax (Appeals) of the disallowance of Rs. 2,47,463 relating to interest claimed by the assessee on borrowed money utilised in granting interest-free advances ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in deleting the disallowance of Rs. 7,200 being the retainership fee paid to Dr. Mithu Kothari and further allowing the entire expenses incurred on the car provided to her ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was right in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Department ?" We have heard learned counsel for the parties. As regards question No. 1, it is not disputed by learned counsel for the assessee that in respect of the assessment year 1976-77 reference on a similar question has already been called by the Allahabad High Court in the case of the assessee itself. In this view of the matter, we are of the opinion that reference on the proposed question has to be called. With regard to questions Nos. 2, 3, 7, 8 and 9, it is not disputed by Mr. Gupta, learned counsel for the Revenue, that in the case of the assessee itself reference of similar questions in respect of earlier assessment years has been declined by the Allahabad High Court in CIT v. Modipon Ltd. (No. 1) [1991] 189 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading receipt. While accepting the assessee's viewpoint that it could not be treated as a trading receipt, the Tribunal has merely relied on its earlier order pertaining to the assessment year 1974-75. Although it is not denied by learned counsel for the Revenue that in respect of the assessment year 1976-77 reference of a similar question has been declined by the Allahabad High Court in the case of the assessee itself (CIT v. Modipon Ltd. (No. 2) [1991] 189 ITR 478 ), what is sought to be contended is that in view of certain observations in a recent decision of the Supreme Court in CIT v. Amritsar Transport Co. P. Ltd. [1993] 201 ITR 816, a question of law does arise from the order of the Tribunal. Learned counsel has urged that these obse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. In our opinion, the ratio of the decision in Amritsar Transport Company's case [1993] 201 ITR 816 (SC) is not applicable to the facts in hand. Having regard to the decision of the Supreme Court in Bijli Cotton Mills' case [1979] 116 ITR 60 and the Allahabad High Court in the case of the assessee itself, we decline to call for a reference on the proposed question. With regard to question No. 6 it has been pointed out by learned counsel for the assessee that for the assessment years 1975-76 and 1976-77 no reference was sought by the Revenue of a similar question. Besides, it is also stated at the Bar that for the assessment year 1979-80, the Assessing Officer has himself allowed similar expenditure. In that view of the matter, the propos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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