COMMISSIONER OF INCOME-TAX Vs. DESAI BROTHERS LTD

JUDGEMENT

(1.) THIS is an application under section 256 (2) of the Income-tax Act, 1961, for directing the income-tax Appellate Tribunal to state the case and refer to this court a question for determination which is set out in the application. It is an accepted position that as far as this court is concerned, the question has been decided in favour of the assessee by a decision of this court in CIT v. Century Spg. and Mfg. Co. Ltd. [1978] 111 ITR 6. In the circumstances, we do not see any reason for allowing the application because, even if the question is framed and referred to us, we will to answer it in the light of the above decision in CIT v. Century Spg. and mfg. Co. Ltd. [1978] 111 ITR 6 (Bom)

(2.) IT is pointed to by Mr. Jetley that a special leave petitioner from the above judgment is pending before the Supreme Court. That, in our view, can be of no assistance because until the question is decided by the Supreme Court, as far as we are concerned, we would be bound by our own decision in CIT v. Century Spg. and Mfg. Co. Ltd. [1978] 111 ITR 6. A similar view was taken in Income-tax Application No. 179 of 1983, decided on February 27, 1984, to which one of us (Mrs. Sujata Manohar J.), was a party. Our attention is drawn to the decision of another division Bench of this court (S. K. Desai and V. S. Kotwal JJ.) dated October 4, 1988, in income-tax Application No. 1 of 1985 (Kewalramani Bros. v. CIT [1991] 189 ITR 90 (Appendix) where the Division Bench made the rule absolute in a case where a decision of the allahabad High Court which had been followed by our High Court was under appeal before the supreme Court. It appears that out earlier decision was not brought to the notice of the second division Bench. For the reason set out above, we follow the earlier decision of February 27, 1984. The rule is, therefore, discharged with no order as to costs.