2001 (2) TMI 25 - HC - Income Tax

Summary

The High Court of Rajasthan directed Mr. Bhandawat to accept notices for the Commissioner of Income-tax, Jaipur. The Court allowed an application under section 256(2) of the Income-tax Act, 1961, and directed the Tribunal to refer a question of law regarding the disallowance of deduction claimed by the assessee for prospecting charges and guest-house expenses. The Tribunal's rejection of the application under section 256(1) was deemed erroneous, and the Court found that the expenses claimed by the assessee as deductible expenses give rise to a question of law. The Court directed the Tribunal to refer the question of law regarding the adjustment made by disallowing prospecting charges amounting to Rs. 2,96,00,000.