COMMISSIONER ON INCOME TAX vs. EXEL GRAPHICS PVT LTD

ITR/181/1986HC GujaratGJHC24010805198624 July 2001Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages
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What were the facts?

This case involves an Income Tax Reference filed by the revenue (Commissioner of Income Tax) against the assessee, Exel Graphics Pvt Ltd. The reference was made at the instance of the revenue to the High Court of Gujarat at Ahmedabad under Section 256(1) of the Income Tax Act, 1961. The Income Tax Appellate Tribunal, Ahmedabad Bench 'A', had referred a specific question of law for the Court's opinion. The procedural history indicates that the matter was brought before the High Court for adjudication on the referred question.

What did the High Court hold?

The High Court answered the referred question in the negative, meaning in favour of the revenue and against the assessee. The Court's reasoning was based on the law laid down by the Honourable Supreme Court in the case of C.I.T. v. Arbuda Mills Ltd., reported in 231 ITR 50. By applying the precedent set by the Supreme Court, the High Court found that the Commissioner of Income Tax did possess the necessary jurisdiction under Section 263 of the Income Tax Act, 1961, to revise the assessment order passed by the Income Tax Officer. The reference was disposed of accordingly, with no order as to costs.

What were the issues?

The Tribunal had to decide the following question of law: 1. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the Commissioner of Income Tax had no jurisdiction under Section 263 of the I.T. Act, 1961 to revise the assessment order passed by the I.T.O.? The revenue contended that the Commissioner of Income Tax did have jurisdiction under Section 263 to revise the assessment order. The assessee's contention, as reflected in the Tribunal's decision being challenged, was that the Commissioner lacked such jurisdiction. The judgment does not explicitly detail the arguments presented by each side beyond the core issue of jurisdiction under Section 263.

Which sections of the Income-tax Act were involved?

Section 256(1),Section 263

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 181 of 1986

For Approval and Signature:

Hon'ble MR.JUSTICE A.R.DAVE and Hon'ble MR.JUSTICE D.A.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 Civil Judge? : NO ----

The order continues below.

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