COMMISSIONER OF INCOME-TAX vs. AMBALAL SARABHAI D. TRUST NO.5

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ITR/111/1992HC GujaratGJHC24015458199203 December 2003Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE K.A.PUJ2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tribunal had erred in law and on facts in allowing the appeal of the assessee. The Court's decision was based on the fact that the facts involved in this reference were similar to those in I.T.R. No. 100/91, which had been disposed of in favour of the revenue and against the assessee. Furthermore, the Court relied on its own previous decision in the case of CIT v. Ambalal Sarabhai D. Trust No. 5, reported in 231 ITR 540. Consequently, the question referred to the High Court was answered in the negative, meaning in favour of the revenue and against the assessee. The reference was disposed of accordingly, with no order as to costs.

What were the facts?

This case involves an Income Tax Reference before the High Court of Gujarat at Ahmedabad. The reference arises from an order dated March 28, 1985, passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'A'. The Tribunal's order dealt with Income Tax Appeals (ITAs) Nos. 2249 and 2250/Ahd/1982 for Assessment Year 1979-80 and ITAs Nos. 1129, 1130, and 1131/Ahd/1982 for Assessment Year 1977-78. The reference was made at the instance of the revenue, the Commissioner of Income-tax, following an order by the Hon'ble Supreme Court in Civil Appeal No. 3575 of 1989. The assessee is Ambalal Sarabhai D. Trust No. 5.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal has not erred in law and on facts in allowing the appeal of the assessee? This is a question of mixed law and fact, turning on the interpretation and application of the Income-tax Act, 1961. The revenue contended that the Tribunal erred in allowing the assessee's appeal. The assessee argued that the Tribunal's decision was correct. Both parties agreed that the facts in this reference were similar to those in I.T.R. No. 100/91. The revenue relied on the High Court's decision in CIT v. Ambalal Sarabhai D. Trust No. 5, 231 ITR 540.

Which sections of the Income-tax Act were involved?

None explicitly mentioned as being discussed in detail, but the context implies provisions of the Income-tax Act, 1961.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 111 of 1992

For Approval and Signature:

HON'BLE MR.JUSTICE A.R.DAVE and HON'BLE MR.JUSTICE K.A.PUJ

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

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

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?

Whether it is to be circulated to the concerned : NO Magistrate/Magistrates,Judge/Judges,Tribunal/Tribunals?

-------------------------------------------------------------- COMMISSIONER OF INCOME-TAX Versus AMBALAL SARABHAI D. TRUST NO.5 -------------------------------------------------------------- Appearance: 1. INCOME TAX REFERENCE No. 111 of 1992 MR MANISH R BHATT for Petitioner No. 1 MR BD KARIA, for Respondent No. 1

--------------------------------------------------------------

CORAM : HON'BLE MR.JUSTICE A.R.DAVE and HON'BLE MR.JUSTICE K.A.PUJ

Date of decision: 03/12/2003

ORAL JUDGEMENT (Per : HON'BLE MR.JUSTICE A.R.DAVE)

In view of the order passed by the Hon'ble Supreme Court in Civil Appeal No. 3575 of 1989 dated 22.8.1989 and 26.9.89, at the instance of the revenue, the following question has been referred to this court for its opinion under the provisions of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'), arising out of an order dated 28.3.85 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'A' in ITAs Nos. 2249 and 2250/Ahd/1982 for the Assessment Year 1979-80 and ITAs Nos. 1129, 1130 and 1131/Ahd/1982 for the Assessment Year 1977-78. "Whether, on the facts and in the circumstances of the case, the Tribunal has not erred in law and on facts in allowing the appeal of the assessee?"

Senior Standing Counsel Shri M.R. Bhatt has appeared for the applicant revenue, whereas learned advocate Shri B.D. Karia has appeared for the respondent assessee.

The learned advocates have submitted that the facts involved in this reference are similar to those involved in I.T.R. No. 100/91. Looking to the fact that the said reference has been disposed of in favour of the revenue and against the assessee and looking to the law laid down by this court in the case of CIT v. Ambalal Sarabhai D. Trust No. 5, 231 ITR 540, we answer the question in the negative, i.e., in favour of the revenue and against the assessee.

The reference stands disposed of accordingly with no order as to costs.

(A.R. Dave, J.)

(K.A. Puj, J.) (hn)

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