2000 (11) TMI 132

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....f a Division Bench of the High Court at Madras (see [1985] 151 ITR 769) delivered upon a reference application by the Revenue. The three questions that the High Court considered, read as follows : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Income-tax Officer was not justified in diminishing the capital base with reference to the de....

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....he assessee. It is not in dispute that the first two questions are covered against the Revenue by the judgment of this court in Second ITO v. Stumpp Schuele and Somappa P. Ltd. [1991] 187 ITR 108. The question to consider, therefore, is the third question. The judgment of this court in Distributors (Baroda) P. Ltd. v. Union of India [1985] 155 ITR 120 delivered in respect of a similar provision....