The Income tax Officer rejected the plea of Kapur Chand and Hira Lal and assessed them in respect of the profits said to have arisen as a result of the sale of those jewellery as an association of persons.
Thereafter the department wanted the Tribunal to refer certain question claimed by it to be questions of law arising from its order to the High Court for its opinion.
The Tribunal rejected that prayer hold that numberquestion of law arose from its order.
Aggrieved by that decision, the department moved the High Court to direct the Tribunal to state a case and refer the questions mentioned by it in its application to the High Court for its opinion.
That order was affirmed by the Appellate Assistant Commissioner.
