JAYANT SILK MILLS PVT LTD. vs. COMMISSIONER OF INCOME-TAX

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ITR/2/1986HC GujaratGJHC24010629198614 June 2001Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Gujarat declined to answer the question referred by the Income Tax Appellate Tribunal. This decision was made because the applicant-assessee, at whose instance the question was referred, did not appear for the hearing, despite being duly served. The Court noted that the revenue was represented. Consequently, the reference was returned unanswered. The judgment does not provide any finding on the merits of the question referred or the reasoning behind the Tribunal's original decision. No operative directions were issued, and no issue was left undecided as the reference itself was not adjudicated.

What were the facts?

This case involves an Income Tax Reference No. 2 of 1986 before the High Court of Gujarat at Ahmedabad. The reference was made at the instance of the assessee, Jayant Silk Mills Pvt Ltd., by the Income Tax Appellate Tribunal, Ahmedabad Bench 'A', under Section 256(1) of the Income-tax Act, 1961. The respondent in the reference is the Commissioner of Income-tax. The matter was listed for hearing on June 14, 2001. The assessee had been duly served, but no one appeared on their behalf. The revenue was represented by its learned advocate.

What were the issues?

1. Whether, on the facts and circumstances of the case, the Tribunal erred in law in holding that the assessment order should not be annulled but set aside? (Question of law, turning on the interpretation of the powers of the Tribunal regarding assessment orders). Assessee's Contention: Not recorded as no one appeared for the assessee. Revenue's Contention: Not recorded as the Court declined to answer the question due to the assessee's non-appearance.

Which sections of the Income-tax Act were involved?

Section 256(1)

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 2 of 1986

For Approval and Signature:

Hon'ble MR.JUSTICE A.R.DAVE and Hon'ble MR.JUSTICE D.A.MEHTA

============================================================ 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 -------------------------------------------------------------- JAYANT SILK MILLS PVT LTD. Versus COMMISSIONER OF INCOME-TAX -------------------------------------------------------------- Appearance: NOTICE SERVED for Petitioner MR MANISH R BHATT for Respondent No. 1

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

CORAM : MR.JUSTICE A.R.DAVE and MR.JUSTICE D.A.MEHTA

Date of decision: 14/06/2001

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

At the instance of the assessee, Income Tax Appellate Tribunal, Ahmedabad Bench 'A' has referred the following question for the opinion of this Court under the provisions of sec. 256(1) of the Income-tax Act, 1961. "Whether, on the facts and circumstances of the case, the Tribunal erred in law in holding that assessment order should not be annulled but set aside?"

2.

When the matter is called out for hearing, nobody has appeared for the applicant-assessee, though the applicant has been duly served. Learned advocate Shri B.B. Naik has appeared for the respondent revenue.

3.

In view of the fact that nobody has appeared for the applicant-assessee, at whose instance the question has been referred to this court, we decline to answer the question and we return the reference unanswered.

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

(A.R. Dave, J.)

(D.A. Mehta, J.) (hn)

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