PRATAPSINGH RAVINDRAJEETSINGH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE applicant (assessee) has filed this application under Section 256(2) of the Income-tax Act, 1961, seeking directions to the Income-tax Appellate Tribunal to state the case and refer the undernoted questions of law for our answer :

(2.) THE applicant is a partnership firm and is assessed to income-tax as a registered firm. It carries on business as a forest contractor and also obtains income from plying of trucks. This application relates to the assessment year 1974-75. THE applicant filed the return for this assessment year. THE Income-tax Officer while making the assessment made certain additions to the income disclosed by the applicant and also initiated proceedings for penalty under Section 271(1)(c) of the Act. In pursuance of such proceedings, the Income-tax Officer passed the final order on March 30, 1979, imposing penalty of Rs. 90,000 under the aforesaid provision (annexure "A"). THE assessee filed an appeal before the Commissioner of Income-tax (Appeals) which was registered as IT-318/1979-80. By order dated December 13, 1982, the appeal was allowed partly. Penalty was reduced to Rs. 81,183 (annexure "B"). THE Commissioner of Income-tax filed second appeal before the Tribunal on April 8, 1983, urging only a solitary ground. THE appeal was registered as 358/IND of 1983. THE copy of the memorandum of appeal is annexure "C". When the appeal came up for hearing on February 17, 1986, the applicant raised preliminary objections against the maintainability of the appeal. THE arguments were heard, but no orders were passed to the knowledge of the applicant. THEreafter, the applicant received notice of a revised memorandum of appeal, filed by the Commissioner of Income-tax to the Tribunal on March 7, 1986. THE applicant then filed objections against the revised memo of appeal on the ground of bar of limitation (annexure "D"). THE objections were reiterated in the application dated April 25, 1986 (annexure "E"). THE Tribunal, by its order dated May 30, 1986, allowed the appeal and set aside the order of the Commissioner of Income-tax (Appeals) and restored the order of the Income-tax Officer imposing penalty of Rs. 90,000 (annexure "F"). THE Tribunal, did not touch upon the question posed against tenability of the appeal. THE applicant then filed an application under Section 256(1) of the Act. THE application was rejected. Aggrieved, the applicant has filed this application.

(3.) SHRI Vyas submitted that questions Nos. 1 and 2 were not raised before the Tribunal and, as such, they do not arise out of the order of the Tribunal. He further submitted that questions Nos. 3 and 4 are based on appreciation of facts and as such, they also do not arise out of the order as questions of law.