COMMISSIONER OF INCOME TAX vs. JAYANTILAL D PATEL

ITR/287/1995HC GujaratGJHC24022610199521 April 2006Author: HONOURABLE MR. JUSTICE D.A.MEHTA,HONOURABLE MS. JUSTICE HARSHA DEVANI4 pages
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What were the facts?

This case concerns Income Tax Reference No. 287 of 1995 before the High Court of Gujarat. The applicant is the Commissioner of Income Tax, and the respondent is Jayantilal D. Patel. The assessment year in question is 1983-84, corresponding to Samvat Year 2038. The reference arises from an order of the Income Tax Appellate Tribunal, Ahmedabad Bench 'A', dated September 26, 1991. The Tribunal's decision was based on its prior ruling for the assessment years 1979-80 to 1982-83, which had been appealed to the High Court in Income Tax Reference No. 212 of 1995. The High Court had decided that earlier reference in favor of the assessee.

What did the High Court hold?

The High Court, in its judgment dated April 21, 2006, decided that the two questions referred were to be answered in the affirmative, meaning in favor of the assessee and against the revenue. The Court noted that the Tribunal's impugned order merely followed its earlier decision in the assessee's own case for assessment years 1979-80 to 1982-83. This earlier decision had been the subject of Income Tax Reference No. 212 of 1995, which was decided by a judgment and order of even date. The Court stated that the issue had been concluded in favor of the assessee in that prior reference. Therefore, it was not necessary to set out the facts and contentions in detail for the present reference. The reference was disposed of accordingly, with no order as to costs.

What were the issues?

The Tribunal had to decide two questions of law referred by the Commissioner of Income Tax: 1. Whether the Appellate Tribunal was right in law and on facts in directing the Income Tax Officer to exclude 50% share of profit of Biren Nandish Trust from the income of the assessee, concerning Section 60 of the Income Tax Act, 1961. 2. Whether the Appellate Tribunal was right in law and on facts in holding that the provisions of Section 60 of the Income Tax Act cannot be invoked. The revenue contended that the Tribunal erred in its directions and holdings regarding the exclusion of trust profits and the applicability of Section 60. The judgment notes that the learned senior standing counsel for the applicant (revenue) was heard. However, no appearance was made on behalf of the respondent assessee, despite being served.

Which sections of the Income-tax Act were involved?

Section 60,Section 256(1)

AI-generated summary — verify with the full judgment below

ITR/287/1995 1/4 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No. 287 of 1995 For Approval and Signature: HONOURABLE MR.JUSTICE D.A.MEHTA HONOURABLE MS.JUSTICE H.N.DEVANI ============================================================== 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ============================================================== COMMISSIONER OF INCOME TAX - Applicant(s) Versus JAYANTILAL D PATEL - Respondent(s) ============================================================== Appearance : MR MANISH R BHATT for Applicant ================================================================== CORAM :  HONOURABLE MR.JUSTICE D.A.MEHTA and HONOURABLE MS.JUSTICE H.N.DEVANI Date : 21/04/2006 CAV JUDGMENT (Per : HONOURABLE MS.JUSTICE H.N.DEVANI) 1.The Income Tax Appellate Tribunal, Ahmedabad

ITR/287/1995

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