COMMISSIONER OF INCOME-TAX vs. RANTI DEVI CHAUDHARY

ITR/374/1984HC GujaratGJHC24012039198428 April 1999Author: HONOURABLE MR. JUSTICE R.BALIA,HONOURABLE MR. JUSTICE ANIL R. DAVE2 pages
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What did the High Court hold?

The High Court held that the issue raised in the reference was squarely covered by a previous decision of a Division Bench of the same court in the assessee's own case, specifically in Commissioner of Income-tax Gujarat II, Ahmedabad Vs. Smt. Ratnjidevi Chaudhary, Ahmedabad in ITR No. 33 of 1982 decided on 7.12.1993 and IT Ref. No. 207/82 decided on 12.10.94. Consequently, the questions referred were answered in the affirmative in favour of the assessee and against the revenue. The reference was disposed of accordingly with no order as to costs. The ratio decidendi is that if a High Court has already decided an issue in the assessee's own case, subsequent references on the same issue will be decided based on that precedent.

What were the facts?

The Commissioner of Income-tax (Revenue) has referred two questions of law to the High Court of Gujarat at Ahmedabad concerning the assessment of Smt. Ranti Devi Chaudhary (Assessee). The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench 'A', had ruled that Section 60 of the Income Tax Act, 1961, was not applicable in the assessee's case, and consequently, her share of profit of Rs. 34,390/- from the firm M/s. Ghesiram Shivsunder could not be included in her total income. The Revenue challenged this decision of the ITAT. The High Court noted that the issue was covered by previous decisions of a Division Bench of the same court in the assessee's own cases.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the appellate Tribunal was right in law in holding that Section 60 of the Income-tax Act, 1961, cannot be applied in the assessee's case and consequently the share of profit of Rs. 34,390/- from the firm M/s. Ghesiram Shivsunder could not be included in computing the total income of the assessee? 2. Whether, when there was no transfer of asset giving rise to the income within the meaning of the provisions of Section 60 of the Income Tax Act, 1961, the Appellate Tribunal was justified in law and on facts in holding that Section 60 had no application and the share of profit of Rs. 34,390/- could not be included in the income of the assessee? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee before the High Court. However, the ITAT's decision, which favored the assessee, was that Section 60 was not applicable and the profit share could not be included in total income. Revenue's Contentions: The Revenue, through the Commissioner of Income-tax, challenged the ITAT's order, seeking to include the share of profit of Rs. 34,390/- in the assessee's total income by applying Section 60 of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 60

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 374 of 1984

For Approval and Signature:

Hon'ble MR.JUSTICE R.BALIA. and MR.JUSTICE A.R.DAVE ============================================================ 1. Whether Reporters of Local Papers may be allowed to see the judgements?

2.

To be referred to the Reporter or not?

3.

Whether Their Lordships wish to see the fair copy of the judgement?

4.

Whether this case involves a substantial question 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?

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The order continues below.

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