COMMISSIONER OF INCOME TAX vs. FARIDAHMED ABDULSAMAD

ITR/140/1988HC GujaratGJHC24013216198801 November 2001Author: HONOURABLE MR. JUSTICE MOHIT S. SHAH,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages

AI SummaryRemanded

What did the High Court hold?

The High Court declined to answer the question referred to it by the Income Tax Appellate Tribunal. The decision was based on the precedent set by this court in Income Tax Reference No. 202 of 1986, where the court had previously declined to answer a similar reference because the facts on record were not clear. By following this precedent, the court indicated that the facts presented in the current reference were also insufficient for it to provide a definitive answer. Consequently, the reference was disposed of without answering the specific question regarding the assessability of the firm's income. No specific finding was made on the merits of the ITAT's order or the revenue's claim.

What were the facts?

This is an Income Tax Reference at the instance of the revenue for assessment year 1980-81. The Income Tax Appellate Tribunal (ITAT), Ahmedabad, referred a question for the opinion of the High Court. The ITAT stated it was following its earlier order dated 20-9-1983 in Appeal No. 2220/Ahd/82. The Tribunal also noted that an elaborate statement of the case for assessment year 1976-77 was already prepared for another reference. The revenue's counsel drew the court's attention to a previous High Court decision in Income Tax Reference No. 202 of 1986, where the court declined to answer the question due to unclear facts.

What were the issues?

1. Whether the income of Rs. 6290/- from the firm M/s. Nilam Industries and Weigh Bridge was assessable in the hands of K.S. Lokhandwala Family Trust and not includible in the income of the assessee? (Question of law) Assessee's contentions: The judgment does not record any specific contentions made by the assessee's counsel, Mr. RK Patel. Revenue's contentions: The revenue, represented by Mr. BB Naik, relied on the High Court's decision in Income Tax Reference No. 202 of 1986, where the court declined to answer the question due to unclear facts on record. The revenue implicitly argued that similar circumstances applied here, leading to the same outcome.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 140 of 1988

For Approval and Signature:

Hon'ble MR.JUSTICE M.S.SHAH and Hon'ble MR.JUSTICE D.A.MEHTA

============================================================ 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 Civil Judge? : NO

The order continues below.

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