COMMISSIONER OF INCOME-TAX vs. GUJ.NARMADA VALLEY FERTILIZERSCOMPANY LIMITED

ITR/201/1986HC GujaratGJHC24010825198610 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 concerns an Income Tax Reference filed by the revenue (Commissioner of Income-tax) at the instance of the revenue, under Section 256(1) of the Income Tax Act, 1961. The reference was made by the Income Tax Appellate Tribunal, Ahmedabad bench 'A'. The dispute revolves around whether a sum of Rs. 26,972/- was taxable. The revenue's advocate argued that the Tribunal had relied on its own previous order concerning the assessee for earlier assessment years, specifically mentioning ITR 104/85, which involved a similar legal issue for the same assessee. The respondent-assessee was served but did not appear.

What did the High Court hold?

The High Court, upon perusal of the judgment in ITR 104/85, which dealt with a similar legal issue for the same assessee, was of the view that the question referred to it had to be answered in the affirmative, in favour of the revenue and against the assessee. The Court found that the Tribunal's reliance on its prior decision in the assessee's own case for earlier years was determinative. The ratio decidendi is that if a prior decision of the Tribunal on a similar issue for the same assessee has been upheld or found to be correct, it can be applied to subsequent years. The reference stands disposed of accordingly, with no order as to costs.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, Rs. 26,972/- was taxable? (Question of law) Assessee's Contentions: Not recorded. Revenue's Contentions: The Tribunal, in passing its order, relied on its previous order in the case of the assessee itself for earlier assessment years. A similar legal issue was involved in ITR 104/85, also concerning the assessee. The revenue contended that based on the judgment in ITR 104/85, the referred question should be answered in its favour.

Which sections of the Income-tax Act were involved?

Section 256(1)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 201 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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