JUDGEMENT
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(1.)This is an application under s. 256(2) of the IT Act filed at the instance of the Revenue in which the following two questions have been raised :
"1. Whether, on the facts and legal position of the case, the Honble Tribunal was justified in holding that the cash payments exceeding Rs. 2,500 made by the assessee amounting to Rs. 44,000 were not disallowable under s. 40A(3) ?.
2. Whether, in view of ratio of the decision of Honble High Court of Andhra Pradesh in the case of M.M.A.K. Mohideen Thamby Co. vs. CIT, 1959 36 ITR 481 Honble Tribunals decision in the case of Dhorajia Construction Co. vs. ITO, 1991 92 CTR 510 and Honble Allahabad High Court in the case of CIT vs. Kapur Bros., 1979 118 ITR 741, the Honble Tribunal was correct in law in deleting the addition of Rs. 54,000 made in the hands of the firm under s. 68 of IT Act, 1961 ?"
(2.)The applicant has sought direction to the Tribunal to refer the aforesaid two questions for the opinion of this Court.
(3.)We have heard learned counsel for the parties. So far as question No. 1 is concerned, in our opinion, it does raise a question of law which arises out of the order of the Tribunal. The application to that extent is allowed.
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