COMMISSIONER OF INCOME TAX vs. MANA SARABHAI TRUST NO 6

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ITR/311/1992HC GujaratGJHC24015651199230 July 1998Author: HONOURABLE MR. JUSTICE C.K.THAKKER,HONOURABLE MR. JUSTICE M.C.PATEL2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court decided to dispose of the reference unanswered. This decision was based on the fact that the matter had been decided in favor of the assessee by the lower authorities, including the Income Tax Appellate Tribunal. Furthermore, a concession was made before the Tribunal. The Court also noted a prior case, Commissioner of Income-Tax v. Leena Sarabhai (N. Ch.), 221 ITR 520, where a similar issue was left unanswered by the High Court due to peculiar facts and circumstances. Therefore, in the present facts and circumstances, the reference was disposed of without answering the question posed.

What were the facts?

This case involves an Income Tax Reference filed by the Commissioner of Income Tax against Mana Sarabhai Trust No. 6. The reference concerns a question of law and fact regarding whether a transfer had occurred, leading to taxable capital gains. The Income Tax Appellate Tribunal had previously decided in favor of the assessee. The judgment refers to a similar case, Commissioner of Income-Tax v. Leena Sarabhai (N. Ch.), 221 ITR 520, where the High Court left the question unanswered due to peculiar facts and circumstances. In the present reference, the matter was disposed of unanswered in light of the earlier decisions and a concession made before the Tribunal.

What were the issues?

1. Whether, as a matter of law and fact, the Appellate Tribunal was correct in holding that there was no transfer in the present case, and consequently, no taxable capital gains arose? The assessee contended that the Tribunal's decision was correct, supported by earlier authorities and a concession made before the Tribunal. The revenue's contentions are not explicitly recorded in the judgment, other than their role as the petitioner in filing the reference.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 311 of 1992

For Approval and Signature:

Hon'ble MR.JUSTICE C.K.THAKKER and MR.JUSTICE M.C.PATEL ============================================================ 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?

-------------------------------------------------------------- COMMISSIONER OF INCOME TAX Versus MANA SARABHAI TRUST NO 6 -------------------------------------------------------------- Appearance: MR MANISH R BHATT for Petitioner NOTICE SERVED for Respondent No. 1

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

CORAM : MR.JUSTICE C.K.THAKKER and MR.JUSTICE M.C.PATEL Date of decision: 30/07/98

ORAL JUDGEMENT

The following question is referred for the opinion of this Court:-

"Whether, the Appellate Tribunal is right in law and on facts in holding that there was no transfer in the present case and therefore there was no taxable capital gains?"

The matter was decided in favour of assessee in view of the earlier decision by the authorities, including the Income Tax Appellate Tribunal, and the concession made before the Tribunal. In fact, in COMMISSIONER OF INCOME-TAX v. LEENA SARABHAI (N.CH.), 221 ITR 520, when the matter reached this Court, in view of peculiar facts and circumstances, the question was left unanswered. In these circumstances, this reference also stands disposed of unanswered. In the facts and circumstances, no order as to costs.

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