COMMISSIONER OF INCOME TAX Vs. AJIT SINGH KHAJANCHI

JUDGEMENT

(1.) THIS is an application made at the instance of Revenue (IT Department) under Section 256 (2) of the IT Act requesting this Court to direct the Tribunal to refer the questions of law which according to Revenue do arise out of the order, dt. 25th Aug. , 1993, passed by Tribunal in ITA No. 1133/ind/1989.

(2.) HEARD Shri R. L. Jain, learned counsel for the applicant and Shri Joshi, learned counsel for the respondent.

(3.) HAVING heard learned counsel for the parties and having perused the record of the case, we are satisfied that question of law does arise out of the order, passed by the Tribunal, referred supra and hence, the Tribunal should have referred the two questions of law proposed by the Revenue to the Tribunal in their application made under Section 256 (1) of the Act. In other words, on perusal of the entire controversy involved in the case, it does appear to us that questions proposed are questions of law and need to be answered by this Court in its reference jurisdiction under Section 256 (1) of the Act. When the issue proposed to be debated at the instance of either Revenue or assessee is not squarely covered by the decision of Supreme Court or by the jurisdictional High Court (M. P.) and when it involves some interpretation of section of the Act on admitted facts emerging from the record of the case, then in our opinion, the question proposed does satisfy the test of it being a question of law for being referred to this Court for answer. It may be that the view taken by the Tribunal may eventually be upheld by the High Court on merits, but then that is no ground to hold that the question proposed is not a question of law. In other words, it still remains a question of law capable of being answered by this Court in its reference jurisdiction.