1996 (7) TMI 21

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....tion 256(1) of the Income-tax Act, 1961, at the instance of the assessee and the following question has been referred for answer by this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the disallowance for the purposes of section 37(3A) of the Income-tax Act, 1961, should be made out of total specified expenses of the assessee and....

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....as specified in section 37(3A). The Commissioner of Income-tax (Appeals) allowed the claim taking each unit as a separate entity for purposes of section 37(3A). The Revenue preferred an appeal before the Income-tax Appellate Tribunal which reversed the finding and held that each of these units could not be treated separately, but treated as one unit. Under section 37(3A), the expression used is "....