BIPINBHAI VADILAL FAMILY TRUSTNO.1 vs. COMMISSIONER OF INCOME-TAX

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ITR/187/1984HC GujaratGJHC24011861198417 December 1998Author: 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 answered the referred question in the affirmative, in favour of the revenue and against the assessee. The reasoning was based on the assessee's own submission that the annual letting value for the assessment year under consideration was the same as in an earlier year. The court noted that it had already decided the earlier year's case in favour of the revenue in Shri Bipinbhai Vadilal Family Trust No.1 v. Commissioner of Income-tax (77 Taxman 370), holding that there was no error in arriving at the finding about the annual letting value of the property. Therefore, following its previous decision, the court found no justification to deviate from the computed gross annual letting value of Rs. 18,000/-. The operative direction was to answer the question in favour of the revenue.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) referred a question of law to the High Court of Gujarat at Ahmedabad concerning the assessment year 1978-79. The assessee is Bipinbhai Vadilal Family Trust No. 1, and the respondent is the Commissioner of Income-tax. The dispute pertains to the computation of the gross annual letting value of a property. The assessee pointed out that the annual letting value fixed for the year under consideration was the same as in an earlier year. The High Court had previously decided this issue against the assessee in an earlier case for the same trust, reported in 77 Taxman 370, upholding the annual letting value.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the gross annual letting value was correctly computed at Rs. 18,000/- per annum? (Question of law) Assessee's contention: The assessee argued that the annual letting value fixed for the assessment year 1978-79 was the same as in an earlier year. The assessee relied on the fact that this court had previously decided an earlier year's case against the assessee, implying a consistent approach to the annual letting value. Revenue's contention: The judgment does not record specific contentions from the revenue. However, the revenue would have supported the ITAT's order which upheld the gross annual letting value.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 187 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?

-------------------------------------------------------------- BIPINBHAI VADILAL FAMILY TRUSTNO.1 Versus COMMISSIONER OF INCOME-TAX -------------------------------------------------------------- Appearance: MR BD KARIA & MR. RK PATEL WITH MR KC PATEL for Petitioner MR MANISH R BHATT for Respondent No. 1

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

CORAM : MR.JUSTICE R.BALIA. and MR.JUSTICE A.R.DAVE Date of decision: 17/12/98

ORAL JUDGEMENT

1.

At the instance of assessee following question of law has been referred to this court for its opinion by the Income Tax Appellate Tribunal, arising out of its order in ITA No. 1800/Ahd/82 for the assessment year 1978-79:

"Whether, on the facts and in the circumstances of the case the Tribunal was justified in law in holding that the gross annual letting value was correctly computed at Rs.18,000/- per annum?".

2.

It has been pointed out by the assessee that in assessee's own case for the earlier year, the annual letting value fixed in the year under consideration has been followed, and the case of earlier year has been decided against the assessee by this Court in its decision in Shri Bipinbhai Vadilal Family Trust No.1 v. Commissioner of Income-tax reported in 77 Taxman 370, by holding that there is no error in arriving at the finding about the annual annual letting value of the property in question.

Accordingly, we answer the question referred to us in affirmative, that is to say in favour of revenue and against the assessee.

No order as to costs.

(Rajesh Balia, J)

(A.R. Dave, J)

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