COMMISSIONER OF INCOME TAX Vs. CHEMIFINE

JUDGEMENT

(1.) THE decision rendered in this case shall also govern disposal of other connected cases being MCC Nos. 65, 66, 67, 71, 72, 77, 78 and 88 of 1995, because all these cases arise between the same parties and secondly, seek to question the legality of one common order passed by the ITAT (Tribunal for short) the only difference being they arise out of different assessment years.

(2.) THIS is an application made by the Revenue (IT Department) under Section 256 (2) of the IT Act praying for calling for the reference on the questions proposed in the application from the Tribunal to this Court for being answered by this Court under Section 256 (1) of the Act. In all these cases, the Tribunal declined to make the reference to this Court and rejected the applications made by the Revenue under Section 256 (1) of the IT Act holding that the questions proposed by the Revenue do not or cannot be regarded as questions of law for being referred to this Court for answer on merits. According to Tribunal, all the questions proposed were pure questions of fact and hence, were not capable of being referred to this Court. It is against this order of the Tribunal declining to refer the case to this Court; the Revenue has come up to this Court by making an application under Section 256 (2) of the Act.

(3.) HEARD Shri R. L. Jain, learned senior counsel with Smt. Sonali Gupta, learned counsel for the applicant and Shri S. C. Bagadia, learned senior counsel with Shri D. K. Chhabra, learned counsel for the non-applicant.