JUDGMENT
1. Heard learned counsel for the Parties.
2. Mr. Sharma, learned counsel for the respondent-assessee submits that there was a circular that not to prefer the references in cases where the tax effect is less than Rs. 2,00,000.
3. The same argument has been considered by this Court in case of CIT v. Rajasthan Patrika Ltd. (2002) 258 ITR 300 (Raj), wherein, the view has been taken that in spite of circular on a policy decision, if Department wants to file reference application, this Court should entertain that.
4. Considering our view taken in the aforesaid case, we found no substance in the argument of Mr. found no substance in the argument of Mr. Sharma, learned counsel for the assessee, and we direct the Tribunal to refer the following question for the opinion of this Court:
“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in relying upon the tax auditors and allowing the guest-house expenses of Rs. 18,423 without first deciding as to whether the premises in question were used for business purposes.”
“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing the claim for commission of Rs. 65,713 for the so-called arrangement between the assessee and M/s Jaipur Durries (P) Ltd.”
“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that for disallowing the claim for interest, it was necessary to establish the nexus between interest-bearing loans and interest-free advances and consequently deleting the disallowance of Rs. 67,944.”
“Whether, on the facts and in the circumstances of the case, and in the absence of any exceptional circumstances shown by the assessee the Tribunal was justified in deleting the disallowance of Rs. 42,000 made under Section 40A(3) of the IT Act, 1961 ?”
5. The Tribunal is further directed to refer these questions within 2 months from the date of receipt of certified copy of this order,
The reference application filed under Section 256(2) of the IT Act, 1961 stands disposed of accordingly.