1989 (7) TMI 10

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....ssioner of Income-tax has filed this petition under section 256(2) of the Income-tax Act, 1961, seeking a direction that the Tribunal should state the case and refer two questions of law to this court : It appears that the respondent-company was formed with the primary object of setting up a hotel. According to its memorandum of association, a large number of business activities could be undert....

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....ions, firms and other associations in which any member or employee may then be interested." The last part of the memorandum contains the other objects and clauses 30 and 31 thereof read as follows : "(30) To carry on business as financiers and as guarantors upon payment of commission and to undertake and carry out all such operations and transactions as an individual capitalist or agent may ....

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.... to do business as financiers, the interest income was liable to be taxed under the head "Business". We find that the Tribunal did refer to the aforesaid clause 9, but gave no reason as to why the said clause was not applicable. Furthermore, no reference was at all made to clause 14 of the main objects clause of the memorandum. The Tribunal also did not refer to or consider the fact that the de....