1991 (2) TMI 92

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..... by T. D. SUGLA J. -This is a reference at the instance of the Department. The proceedings relate to the assessee's assessment for the years 1968-69, 1969-70 and 1970-71. The Tribunal has referred to this court the following three questions of law under section 256(1) of the Income-tax Act, 1961 : Assessment year 1968-69 : " 1. Whether, on the facts and in the circumstances of the case, the T .....

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..... 's judgment in CIT v. Indokem Private Ltd. [1981] 132 ITR 125, the first question requires to be answered in the affirmative and in favour of the assessee. The question is so answered. Counsel are also agreed that the issue involved in the second question is covered by our court's judgment in the case of CIT v. Colour-Chem Ltd 1977] 106 ITR 323. In view thereof, we answer the second question thu .....

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..... . C. Upadhyaya [1974] 96 ITR 1. No doubt, thereafter, the view taken both in the circular and by our court was disapproved by the Supreme Court in its decision in the case of Shri Shubhlaxmi Mills Ltd. v. Addl. CIT [1989] 177 ITR 193. However, by retrospective amendment of section 34(3)(a) by the Finance Act, 1990, the legal position has been restored in keeping with the view taken in the aforesai .....

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