COMMISSIONER OF INCOME TAX vs. HARISH S. BACHKANIWALA

ITA/290/1999HC GujaratGJHC24025029199928 September 1999Author: HONOURABLE MR. JUSTICE B.C.PATEL,HONOURABLE MR. JUSTICE P.B.MAJMUDAR2 pages
AI SummaryDismissed

What were the facts?

The Commissioner of Income-tax, Surat, filed an application under Section 256(2) of the Income-tax Act, 1961, before the High Court of Gujarat. The application sought a reference to the High Court on a question of law concerning the deletion of additions made by the Assessing Officer. The additions, totaling Rs. 5,69,477 and Rs. 6,57,307 for block periods, were based on inferences drawn from seized materials. The Income Tax Appellate Tribunal (ITAT) had previously deleted these additions. The High Court, in its order dated 28/09/1999, considered a previous decision of the same court in N.R. PAPER & BOARDS LTD. reported in 234 ITR page 733.

What did the High Court hold?

The High Court rejected the application for reference. The Court referred to its own prior decision in ITA No. 266 of 1999, which covered the same question raised in the present application. By virtue of that earlier decision, the High Court found that the application for reference was required to be rejected. The operative direction was the rejection of the application and the discharge of the rule, with no order as to costs. The specific reasoning of the Tribunal in deleting the additions is not detailed in this judgment, as the High Court's decision is based on its own precedent regarding the reference application itself.

What were the issues?

The High Court had to decide whether the Tribunal was justified in deleting the additions of Rs. 5,69,477 and Rs. 6,57,307 made by the Assessing Officer for the block periods, based on inferences from seized materials. The question is framed as a question of law. The Assessee (Harish S. Bachkaniwala) is not recorded as having made any arguments before the High Court. The Revenue (Commissioner of Income-tax) contended that the Tribunal was not justified in deleting the additions, as they were based on inferences from seized materials. The Revenue sought a reference to the High Court on this question of law. The Tribunal's decision was based on the High Court's earlier ruling in N.R. PAPER & BOARDS LTD. (234 ITR 733).

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 290 of 1999

For Approval and Signature:

Hon'ble MR.JUSTICE B.C.PATEL and Hon'ble MR.JUSTICE P.B.MAJMUDAR ============================================================ 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 1 to 5 No

The order continues below.

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