A.K. Sikri, J.

1. Vide common orders dated August 16, 2010 passed in ITA No. 803 of 2007, ITA No. 499 of 2008 and ITA No. 1113 of 2008, reference was made to the Full Bench. Since the issue involved in other appeals was also identical to these three appeals, the Division Bench referred those appeals also to the Full Bench to be heard along with these appeals. This is how all these appeals came up for hearing. During the arguments of these appeals, it was also agreed that the lead case where the reference would be answered is ITA No. 499 of 2008. It was also conceded by the counsel for all the parties that answer to the referred question would lead to the decision on merits in the appeals itself and, therefore, we not only answer the reference, but the appeals be also finally decided by this Court. With these preliminary and introductory remarks, we take up the facts which appear in ITA No. 499 of 2008 and the nature of reference made by the Division Bench vide orders dated August 16, 2010. Since learned Counsel for the parties were also unanimous that the facts as recorded in the orders dated August 16, 2010 are correctly reproduced for answering this reference, it would be