1986 (1) TMI 7

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.... J.-In this reference made under section 256(1) of the Income-tax Act, 1961 ("the Act"), the Income-tax Appellate Tribunal, Bangalore Bench, Bangalore ("the Tribunal"), at the instance of the Revenue, has referred the following question of law for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in deciding that the revenu....

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....re commonly incurred at each unit covering all divisions, but for purposes of internal assessment, monthly allocations are made between different divisions. There is only cash in-flow and out-flow and it is left to the unit management to adjust cash between the different divisions as situations demand. Thus, there is free intermingling of finance and unity of overall control of the head office at ....

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....m of affairs of each unit. The employees of each unit, although employed in different divisions thereof, are bound by a common set of rules and procedures and are also governed by common service conditions. There is free interchange of personnel from one division to another and from one unit to another. Inter-divisional transfer of employees is permitted on a large scale depending on the work load....

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....ment; financial, administrative and production aspects, amongst all divisions of each unit and amongst all units of Hindustan Machine Tools Ltd. as a whole." On an independent examination, the Tribunal had concurred with these findings of the Appellate Assistant Commissioner. In concurring with these findings, the Tribunal had applied the ratio in B. R. Ltd. v. V. P. Gupta, CIT [1978] 113 ITR 6....