CIT Vs. ASHOK PAL DAGA

JUDGEMENT

(1.) The decision rendered in this case shall also govern disposal of other case being M.C.C. No. 511 of 1995 because both these cases arise out of the same order and secondly they arise between the same parties except the difference is that of different assessment years.

(2.) This is an application made by the revenue (Commissioner of Income Tax) under section 256(2) of the Income Tax Act consequent upon the dismissal of their application made under section 256(1) ibid . by the Tribunal being R.A. Nos. 94, 97 and 98/Ind/94 on 12-12-1994 which in turn arise out of an order dated 8-7-1994 passed by Tribunal in consolidated cases being ITA Nos. 288, 289, 781, 557 and 558/Ind/92 arising out of assessment years 1987-88 to 1989-90 in relation to same assessee, i.e., respondent herein. According to Tribunal (ITAT) the questions proposed by the revenue do not really arise out of the order passed by Tribunal in appeal referred supra and they are in fact questions relating to facts. It is for this reason and after recording a finding to this effect, the Tribunal declined to allow the allocation made by the revenue under section 256(1) ibid., and thus refused to refer the statement of case to this court for answering the question proposed. As a consequence of this rejection, the revenue has come up under section 256(2) of the Act to this court praying for calling the reference from the Tribunal on the question proposed by the revenue. Notice of this application was issued to respondent/assessee. They are served and represented.

(3.) Heard Shri R.L. Jain, learned counsel for the applicant and Shri G.M. Chafekar, learned senior counsel with Shri Sarda, learned counsel for non-applicant.