COMMISSIONER OF INCOME TAX vs. KOLITHAD JUTH SEVA SAHKARI MANDLI LTD

ITR/279/1993HC GujaratGJHC24021306199322 September 2005Author: HONOURABLE MR. JUSTICE D.A.MEHTA,HONOURABLE MS. JUSTICE HARSHA DEVANI5 pages
AI SummaryRemanded

What were the facts?

The Income-tax Appellate Tribunal (Tribunal) held that the income of Kolithad Juth Seva Sahkari Mandli Ltd. (assessee) was exempt under a notification dated 22.12.1950 for Assessment Year 1983-84. The Tribunal relied on its own prior decisions in the cases of Moti Marad Juth Vividh Karyakari Sahkari Mandli Limited and Shri Gopalgram Seva Sahkari Mandli Limited. The Revenue filed a reference application under Section 256(1) of the Income-tax Act, 1961, seeking to challenge the Tribunal's order. During the hearing, the Court inquired about the outcome of the earlier matters. It was stated that the Revenue's reference applications in those cases were rejected under Section 256(1), and subsequent applications under Section 256(2) were also rejected by the High Court. However, in one of those cases, the Apex Court directed the Tribunal to refer questions. The Revenue was unable to ascertain the final outcome of that matter.

What did the High Court hold?

The High Court left the reference unanswered. The Court noted that the Tribunal had relied on its own prior decisions in similar cases. In one of those cases, Moti Marad Juth Vividh Karyakari Sahkari Mandli Limited, the matter had attained finality at the stage of rejection of the reference application under Section 256(2). However, in the other relied-upon case, Shri Gopalgram Seva Sahkari Mandli Limited, the Apex Court had directed the Tribunal to refer questions. The Revenue, despite efforts, could not ascertain whether such a reference was made, heard, disposed of, or was pending. Given the uncertainty regarding the outcome of the precedent cases, and the inability of the Revenue to provide a definitive status, the Court found itself unable to answer the reference. The reference was returned unanswered and disposed of.

What were the issues?

1. Whether, the Appellate Tribunal is right in law and on facts in holding that the income of the assessee society is exempt under notification dated 22.12.1950? (Question of law and fact, turning on the interpretation and application of the notification dated 22.12.1950). Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue challenged the Tribunal's finding that the assessee's income was exempt. The Revenue relied on the fact that the Tribunal's decision was based on its own prior orders. The Revenue also highlighted that in one of the relied-upon cases (Shri Gopalgram Seva Sahkari Mandli Limited), the Apex Court had directed the Tribunal to refer questions, indicating a dispute on the merits. The Revenue was unable to ascertain the final outcome of this Apex Court-directed reference.

Which sections of the Income-tax Act were involved?

Section 256(1),Section 256(2)

AI-generated summary — verify with the full judgment below

ITR/279/1993 1/5 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No.279 of 1993 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 KOLITHAD JUTH SEVA SAHKARI MANDLI LTD - Respondent(s) ===================================================== Appearance : MR MANISH R BHATT for Applicant(s) : 1, NOTICE SERVED for Respondent(s) : 1, ===================================================== CORAM : HONOURABLE MR.JUSTICE D.A.MEHTA and HONOURABLE MS.JUSTICE H.N.DEVANI Date : 22/09/2005 ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE D.A.MEHTA)

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