THE COMMISSIONER OF INCOME TAX vs. AMBALAL SARABHAI D. TRUST NO.5

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ITA/59/1989HC GujaratGJHC24012649198927 November 1996Author: HONOURABLE MR. JUSTICE R.K.ABICHANDANI,HONOURABLE MR. JUSTICE R.BALIA2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, following the directions of the Supreme Court, has ordered the Income Tax Appellate Tribunal, Ahmedabad Bench 'A', to raise and refer the questions suggested in paragraph 4 of the Department's application, along with a statement of case. The High Court is not deciding the substantive questions of law at this stage. Instead, it is directing the process of reference to be undertaken. The operative direction is for the ITAT to prepare and submit the reference by December 7, 1996, for listing on December 16, 1996. The rule is made absolute, meaning the Department's application for direction is granted. No issue was expressly left undecided; the decision is procedural.

What were the facts?

This matter concerns an application filed by the Commissioner of Income Tax (the Department) seeking a direction from the High Court of Gujarat to the Income Tax Appellate Tribunal (ITAT) to refer certain questions for the opinion of the High Court. The High Court had previously rejected this application on March 29, 1989. However, the Supreme Court, by an order dated March 21, 1996, set aside the High Court's order and directed the High Court to reconsider the matter in light of its judgment in Commissioner of Income Tax Vs. Kamalini Khatau (209 ITR 101). Consequently, the High Court is now directing the ITAT to raise and refer the questions proposed by the Department, along with a statement of case.

What were the issues?

1. Whether the High Court should direct the Income Tax Appellate Tribunal to refer specific questions of law to it for its opinion, as sought by the Commissioner of Income Tax. This issue arises from the Department's application for a reference. The Department contended that the questions proposed in paragraph 4 of its application are valid and should be referred. The respondent (Ambalal Sarabhai D. Trust No.5) did not record any specific arguments in this judgment, but their position would be against the reference being directed. The High Court's decision is to be made in light of the Supreme Court's judgment in CIT vs. Kamalini Khatau.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX APPLICATION No 59 of 1989

For Approval and Signature:

Hon'ble MR.JUSTICE R.K.ABICHANDANI and MR.JUSTICE R.BALIA. ============================================================

-------------------------------------------------------------- THE COMMISSIONER OF INCOME TAX Versus AMBALAL SARABHAI D. TRUST NO.5 -------------------------------------------------------------- Appearance: MR MANISH R BHATT for Petitioner MR RK PATEL for Respondent No. 1

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CORAM : MR.JUSTICE R.K.ABICHANDANI and MR.JUSTICE R.BALIA. Date of decision: 27/11/96 Tribunal, Ahmedabad Bench "A" to raise and refer for the opinion of this Court the questions suggested in paragraph 4 of the application alongwith the statement of case so as to reach the registry by 7th December, 1996. The reference should be listed for hearing on 16.12.1996. Rule is made absolute accordingly with no order as to costs.

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