IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME INCOME INCOME TAX REFERENCE NO. 195 OF 1988. TAX REFERENCE NO. 195 OF 1988. TAX REFERENCE NO. 195 OF 1988. The Commissioner of Income-tax. ... Applicant. V/s. M/s.Swastik Textile Mills Ltd. ... Respondent. Ashok Kotangale for the applicant. S.N.Inamdar for the respondent. CORAM CORAM CORAM : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. : V.C.DAGA AND A.S.AGUIAR, JJ. DATED DATED DATED : 27th June 2005. : 27th June 2005. : 27th June 2005. P.C. P.C. P.C. : : : ---- ---- ---- . By this reference under section 256 of the Income-tax Act, 1961, the Income Tax Appellate Tribunal has referred the following question of law for the opinion of this Court: 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the land in question, though originally held as capital asset, was a part of its stock-in-trade for assessment year 1978-79 and on that basis allowing municipal taxes amounting to Rs.32,503/- as a business expenditure in computing the total income of the assessee?" . Learned counsel for the parties agreed that in view of the decision of this Court in the case of C.I.T. C.I.T. C.I.T. v. Swastick Textile Mills v. Swastick Textile Mills v. Swastick Textile Mills, (1995) 214 ITR 740, question referred to us has to be answered in the affirmative i.e. in favour of the assessee and against the revenue. . Reference stands disposed of with no order as to costs. (A.S.AGUIAR, (A.S.AGUIAR, (A.S.AGUIAR, J.) J.) J.) (V.C.DAGA, (V.C.DAGA, (V.C.DAGA, J.) J.) J.)