COMMISSIONER OF WEALTH TAX Vs. MOHAMMAD SABIR

JUDGEMENT

(1.) THESE reference applications are filed by the Commissioner of Wealth-tax, Bhopal, under Section 27(3) of the Wealth-tax Act, 1957 (for short, "the Act"), seeking reference of a common question as extracted below :

(2.) THE assessees are the partners of the firm bearing the name and style of Kalekhan Mohd. Hanif, Bhopal. At the time of wealth-tax assessment for 1977-78, the Assessing Officer observed that there was a provision of huge amount in respect of the liabilities under various heads in the account of the firm. He, therefore, made an addition to the extent of the assessee's share in respect of liabilities in the case of the firm. THE Wealth-tax Officer also ordered levy of penalty under Section 18(1)(c) of the Act. This was cancelled by the Commissioner of Wealth-tax (Appeals). THE Income-tax Appellate Tribunal dismissed the appeals of the Department holding that the assessees had disclosed full facts and particulars before the Assessing Officer and there was no case of concealment. THE Department thereafter filed an application under Section 27 of the Act before the Appellate Tribunal seeking reference of the question of law, as noted above, to this court for opinion. That application was rejected on November 30, 1990. THE Department (Commissioner of Wealth-tax) has thereafter filed these reference applications.

(3.) SHRI Vyas submitted that the Tribunal may be directed to state the case and refer the aforesaid question of law to this court for opinion. SHRI Jain, on the other hand, submitted that the cases do not involve any question of law and as such the reference applications deserve to be dismissed.