ZENITH LTD Vs. DY COMMR OF INCOME TAX

JUDGEMENT

(1.) BY our order dated 22nd September, 2004 we granted time to the learned Counsel for the appellant to satisfy us that the appeal under section 260-A of the Income Tax Act, 1961 was maintainable against the order dated 18th October, 2002. The Income Tax Appellate Tribunal by the impugned order rejected the appellant's application for leave to add additional grounds in the appeal preferred by them.

(2.) MR. Vissanji, the learned Counsel for the appellant submitted that the impugned order vitally affects the rights of the appellant and the said order is covered by the expression "every order passed in appeal by the Appellate Tribunal" occurring in section 260-A. She relied upon the judgment of the Supreme Court in the case of (Shah Babulal Khimji v. Jayaben D. Kania and anr.), 1983 (1) Bom. C. R. (S. C. J37 : A. I. R. 1981 S. C. 1786.

(3.) SECTION 260-A of the Income Tax Act, 1961 reads thus : "260-A (1 ). An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal, if the High Court is satisfied that the case involves a substantial question of law. (2) The Chief Commissioner or the Commissioner or an assessee aggrieved by any order passed by the Appellate Tribunal may file an appeal to the high Court and such appeal under this sub-section shall be- (a) filed within one hundred and twenty days from the date on which the order appealed against is received by the assessee or the Chief Commissioner of Commissioner; (b ). . . . . . (c) in the form of a memorandum of appeal precisely stating therein the substantial question of law involved. (3) Where the High Court is satisfied that the substantial question of law is involved in any case, it shall formulate that question. (4) The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be allowed to argue that the case does not involve such question; provided that nothing in this sub-section shall be deemed to take away or abridge the power of the Court to hear for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question. (5) The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit. (6) The High Court may determine any issue which- (a) has not been determined by the Appellate Tribunal; or (b) has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law as is referred to in sub-section (1 ). (7) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section.