1994 (8) TMI 6

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....-- The Income-tax Appellate Tribunal has referred the following question for our consideration under section 256(1) of the Income-tax Act, 1961, arising out of the proceedings in respect of the assessment year 1970-71 : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding the action of the Commissioner of Income-tax in invoking the provisions of sect....

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....rrowings for its investment with Atul Glass Industries Pvt. Ltd. and allied concerns for considerations other than that of business. This order of the Commissioner was challenged before the Appellate Tribunal. The Tribunal declined to interfere with the order of the Commissioner. The Tribunal in support of its conclusion held as follows : " On a careful consideration of the rival contentions, w....

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....all be disallowed as is not ascribable to the carrying on of the assessee-firm's business activity. As such we decline to interfere with the order under section 263. " We do not think that a question of law arises from the order of the Appellate Tribunal on the facts of this case. The Commissioner was perfectly competent to exercise his powers under section 263 whenever he found, prima facie, t....