COMMISSIONER OF INCOME-TAX vs. AMBALAL SARABHAI (A.15)D.TRUST

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ITR/112/1992HC GujaratGJHC24015459199203 December 2003Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE K.A.PUJ2 pages

AI SummaryRemanded

What did the High Court hold?

The High Court answered the reference in the negative, meaning it found 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 similarity of facts to I.T.R. No. 100/91, which had been decided in favor of the revenue, and the precedent set by this court in CIT v. Ambalal Sarabhai D. Trust No. 5, 231 ITR 540. Consequently, the High Court's opinion is in favor of the revenue and against the assessee. The reference was disposed of accordingly, with no order as to costs. The operative direction is that the Tribunal's order allowing the assessee's appeal is effectively set aside by this opinion.

What were the facts?

This case involves an Income Tax Reference before the High Court of Gujarat at Ahmedabad concerning the Commissioner of Income-tax (Revenue) and Ambalal Sarabhai (A.15) D. Trust (Assessee). The reference arises from an order dated March 28, 1985, passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'A'. The Tribunal's order was in 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, following an order by the Supreme Court in Civil Appeal No. 3576 of 1989.

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? (Question of law and fact, concerning the Tribunal's decision to allow the assessee's appeal). Assessee's Contention: Not explicitly recorded, but the reference itself implies the assessee's appeal was allowed by the Tribunal. Revenue's Contention: The revenue contends that the Tribunal erred in law and on facts by allowing the assessee's appeal. The revenue relies on the facts being similar to those in I.T.R. No. 100/91, which was disposed of in favor of the revenue, and the law laid down by the High Court in CIT v. Ambalal Sarabhai D. Trust No. 5, 231 ITR 540.

Which sections of the Income-tax Act were involved?

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 112 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 (A.15)D.TRUST -------------------------------------------------------------- Appearance: 1. INCOME TAX REFERENCE No. 112 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. 3576 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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