CI.T PATIALA vs. M/S KRISHNA COLD STORAGE RAJPURA

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ITR/121/1997HC Punjab & HaryanaPHHC01035362199707 December 2006Bench: MR. JUSTICE RAJESH BINDAL,MR. JUSTICE ADARSH KUMAR GOEL1 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the reference application as infructuous. The Court noted that a related matter, Commissioner of Income Tax, Patiala v. Krishna Cold Storage Rice Mills, Rajpura, I.T.R. No.355 of 1995, had been decided by this Court on 30.11.2006. In light of that decision, the present reference was rendered moot. Therefore, no specific finding was given on the question of law posed by the ITAT. The operative direction was to dispose of the reference accordingly, without delving into the merits of the ITAT's order or the Revenue's challenge.

What were the facts?

The Commissioner of Income-tax, Patiala (Revenue) filed a reference application under Section 256(1) of the Income Tax Act, 1961, to the Punjab and Haryana High Court. This arose from an order passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, dated 31.07.1996, in I.T.A. No.295/Chandi/91, concerning assessment year 1983-84. The ITAT had dismissed the Revenue's appeal on the grounds that the Commissioner's order under Section 263 had been set aside. The Revenue challenged this dismissal. The High Court was asked to decide a specific question of law arising from the ITAT's order.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the ITAT was right in law in dismissing the Revenue’s appeal on the ground that CIT’s order u/s 263 has been set aside when the reference application u/s 256(1) was pending before the Hon’ble Punjab and Haryana High Court? Assessee's contentions: Not recorded. Revenue's contentions: The Revenue contended that the ITAT was not justified in dismissing its appeal solely because the Commissioner's order under Section 263 was set aside, especially when the reference application was pending before the High Court. The Revenue sought to argue that the procedural stage of the reference application should not preclude the High Court from opining on the correctness of the ITAT's decision.

Which sections of the Income-tax Act were involved?

Section 256(1),Section 263

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.R. No.121 of 1997 Date of decision: 07.12.2006 The Commissioner of Income-tax, Patiala. -----Applicant Vs. M/s Krishna Cold Storage, Rajpura. -----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON'BLE MR JUSTICE RAJESH BINDAL Present: Dr. N.L. Sharda, Advocate for the revenue. ----- ORDER: Following question of law has been referred for opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh, arising out of its order dated 31.07.1996 in I.T.A. No.295/Chandi/91 in respect of assessment year 1983-84:- “Whether, on the facts and in the circumstances of the case, the ITAT was right in law in dismissing the Revenue’s appeal on the ground that CIT’s order u/s 263 has been set aside when the reference application u/s 256(1) was pending before the Hon’ble Punjab and Haryana High Court?” Learned counsel for the revenue states that in view of order passed by this Court on 30.11.2006 in Commissioner of Income Tax, Patiala v. Krishna Cold Storage Rice Mills, Rajpura,, I.T.R. No.355 of 1995, this matter has been rendered infructuous. The reference is disposed of accordingly. ( ADARSH KUMAR GOEL ) JUDGE December 07, 2006 ( RAJESH BINDAL ) ashwani JUDGE

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