COMMISSIONER OF INCOME TAX Vs. JACOB M C

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following questions of law for the decision of this court :

(2.) THE respondent is an assessee to income-tax. We are concerned with the assessment years 1974-75 and 1975-76. Identical questions arose for consideration in both the years.

(3.) WE are of the view that the order of the Appellate Tribunal is erroneous in law. At a time when the appeals came up before the Appellate Tribunal, Section 80J of the Act has been amended, according to the Tribunal, in support of the view taken by the Revenue. The Tribunal was duty bound to give effect to the law as amended. By failing to do it, it abdicated its duty. The fact that a writ petition was filed in the Supreme Court challenging the validity of the amendment was of no consequence or relevance. The Appellate Tribunal has no case that the operation of Section 80J as amended was stayed or further directions were given by the Supreme Court. Instead of disposing of the appeal on the basis of the amended Section 80J, the Tribunal remitted the case to the first appellate authorily with an added direction that the appellate authority will bear in mind the Calcutta and Madras High Court judgments and also the order of the Special Bench at Bombay. It was for the Appellate Tribunal to consider the matter on the basis of the law as it stood at the time when the appeal was heard. Since it was not done, the Appellate Tribunal failed to discharge the duty imposed on it by law. WE hold so. The order of remit was unauthorised and illegal. It was unnecessary and uncalled for. WE hold that the order of the Appellate Tribunal dated October 15, 1980, is infirm.