AMBALAL SARABHAI ENTERPRISES LTD vs. C.I.T.

ITR/74/1993HC GujaratGJHC24021183199316 October 2001Author: HONOURABLE MR. JUSTICE MOHIT S. SHAH,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages

AI SummaryAllowed

What did the High Court hold?

The High Court held that the question referred to it was concluded by its own prior decision in the case of Kalindi Investment Pvt. Ltd. vs. C.I.T., 213 ITR 207. Consequently, the Court found that the Income Tax Appellate Tribunal was correct in law in holding that the investment allowance originally granted was properly withdrawn. The question posed in the reference was answered in the affirmative, favoring the revenue and against the assessee. The reference was disposed of accordingly, with no order as to costs. The principle established is that if a specific issue has been decided by a High Court in a prior judgment, subsequent references on the same issue will be decided in line with that precedent.

What were the facts?

This case involves an Income Tax Reference No. 74 of 1993 before the High Court of Gujarat at Ahmedabad. The assessee, Ambalal Sarabhai Enterprises Ltd., sought a reference on a question of law concerning the withdrawal of investment allowance. The revenue was represented by the Commissioner of Income Tax (CIT). The assessment years are not explicitly stated in the provided text. The matter reached the High Court upon a reference made by the Income Tax Appellate Tribunal (ITAT) at the instance of the assessee. The High Court heard arguments from both the assessee and the revenue.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the investment allowance originally granted was properly withdrawn? (Question of law) Assessee's Contention: The assessee, through Mr. R.K. Patel, sought the reference to the High Court on this specific question. The judgment does not explicitly detail the assessee's arguments before the High Court, other than their request for the reference. Revenue's Contention: The revenue, represented by Mr. M.H. Joshi, contended that the question referred to the High Court stands concluded by a previous decision of the same court in the case of Kalindi Investment Pvt. Ltd. vs. C.I.T., 213 ITR 207. The judgment does not record any further arguments from the revenue.

AI-generated summary — verify with the full judgment below

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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 74 of 1993

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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