COMMISSIONER OF INCOME TAX vs. ATUL PRODUCTS LTD.

ITA/404/1999HC GujaratGJHC24025143199902 April 2003Author: HONOURABLE MR. JUSTICE R.K.ABICHANDANI,HONOURABLE MR. JUSTICE K.M.MEHTA2 pages
AI SummaryDismissed

What were the facts?

The Commissioner of Income Tax (CIT) applied to the High Court of Gujarat under Section 256(2) of the Income Tax Act, 1961, seeking a reference on a question of law. The application concerned an order passed by the Income Tax Appellate Tribunal (ITAT) which confirmed the Commissioner of Income-tax (Appeals) order. The ITAT's order had deleted an addition made by the Assessing Officer on account of a change in the method of stock valuation. This application was ordered to be heard along with ITA No. 351 of 1999, which also involved the same assessee and a different assessment year. A Division Bench of the High Court had previously rejected the application in ITA No. 351 of 1999 by an order dated 02.02.2001.

What did the High Court hold?

The High Court rejected the application for reference. The Court noted that a similar application (ITA No. 351 of 1999) preferred by the same assessee for a different assessment year had already been rejected by a Division Bench of the same court by an order dated 02.02.2001. In that prior order, it was held that no question of law arose. Following this precedent, the present application under Section 256(2) for calling for a reference on the stated question was also rejected. The Court found no substantial question of law to be referred. The rule was discharged with no order as to costs.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the Commissioner of Income-tax (Appeals) deleting the addition made on account of change in the method of stock valuation? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The assessee is the respondent in this application for reference. Revenue's Contention: The Revenue, as the applicant, sought to raise a question of law regarding the ITAT's confirmation of the deletion of the addition made on account of a change in the method of stock valuation. The Revenue argued that a substantial question of law arises from the ITAT's order.

Which sections of the Income-tax Act were involved?

Section 256(2)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX APPLICATION No 404 of 1999

For Approval and Signature:

Hon'ble MR.JUSTICE R.K.ABICHANDANI and Hon'ble MR.JUSTICE K.M.MEHTA

============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements?

2.

To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?

4.

Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

5.

Whether it is to be circulated to the concerned : NO

The order continues below.

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