C I T vs. VIMAL CHAND SURANA

1

In the High Court of Judicature for Rajasthan Jaipur Bench

DB Income Tax Reference Application No.1/2006 Date of Order ::: 27/10/2014 Hon'ble Mr. Justice Ajay Rastogi

Hon'ble Mr. Justice JK Ranka Mr. Anuroop Singhi, Mr. Sandeep Pathak, for Revenue. Mr. TC Jain, for assessee. Instant reference application has been filed u/S.256(2) of the Income Tax Act, 1961 (Act, 1961) against the order dt.22.1.1996 passed by the Income Tax Appellate Tribunal, Jaipur Bench Jaipur arising out of assessment year 1987-88. Counsel for revenue submits that for the assessment year 1989- 90, the order came to be passed by the Tribunal on 17.3.1997 placing reliance on earlier order of the Tribunal dt.22.1.1996 rejecting the application filed by the Revenue of making reference of the substantial question which emerges for consideration before this Court and that came to be rejected only on the basis of its order dt.22.1.1996. However, on reference application being filed by the revenue arising out of assessment year 1989-90 u/S.256(2) of the Act that came to be decided by this Court vide order dt.26.3.2003 directing the Tribunal to make a reference to this Court of the substantial question of law for consideration. Pursuant thereto, the Tribunal sent its statement of case to this Court on 9.5.2003 and that has been registered as DB IT Reference- 4/2003. 2 Counsel submits that in the light of order of this Court dt.26.3.2003, the present reference application deserves acceptance and the Tribunal may be directed to make a reference keeping in view the substantial question of law which has been referred to this Court of the same assessee for assessment year 1989-90 pending consideration in DB Income Tax Reference-4/2003. Counsel appearing for assessee submits that this is purely an appreciation of facts and after the finding has been affirmed by the Tribunal, there appears no justification calling for reference from the tribunal and as regard the later order is concerned, he will be able to convince this Court that even if reference has been called for by this Court for the later assessment year 1989-90, still for the assessment year 1987-88, since a finding of fact has been recorded and no reference in the present circumstances for the assessment year in question deserves consideration and submits that reference application filed u/S.256(2) of the Act deserves to be dismissed.

We have heard the parties and taking note of the order of this Court dt.26.3.2003 disposing of application filed by the revenue u/S.256 (2) of the Act arising out from assessment year 1989-90 and pending consideration in DB Income Tax Reference-4/2003 and the nature of transaction are almost the same including substantial question which emerges for consideration as regard scope of Sec.80 HHC of the Act is concerned, we consider appropriate that reference application deserves acceptance.

3 Accordingly, the reference application is disposed of with the direction to the Tribunal to make a reference to this Court keeping in view order of this Court dt.26.3.2003 of assessment year 1989-90 and since the matter is pending in this Court for almost seventeen years (filed in 1997) by now, we consider appropriate to direct the Tribunal to make reference for the assessment year 1987-88 within two months of the order being served in their office. Registry is directed to send a copy of this order to the Tribunal. After reference is made by the Tribunal, the Registry is directed to tag along with DB IT Reference-4/2003. [JK Ranka], J. [Ajay Rastogi], J dsr/ "All corrections made in the judgment/order have been incorporated in the judgment/order being emailed" Datar Singh P.S.