BHAGWAN CLOTH STORES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the following question of law has been referred to this court for its opinion by the Tribunal under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1976-77:

(2.) AFTER having heard counsel for the Department, since the assessee remained unrepresented, we are of the opinion that the question has to be answered in the affirmative, in view of the recent decision of the Supreme Court in Ratanchand Darbarilal v. CIT[1985] 155 ITR 720 that the genuineness of a firm is a question of fact--Tribunal considering all aspects--High Court not justified in going into the facts. It may be mentioned here THAT this court had taken a contrary view in CIT v. Ratanchand Darbarilal [1975] 100 ITR 258, which has been reversed by the Supreme Court in the aforesaid decision, that the High Court has jurisdiction to interfere with the findings of the Tribunal that a genuine firm had come into existence. In the present case, there is a concurrent finding by the authorities below that no genuine firm has come into existence. This finding was not challenged before the Tribunal and so it has not been required to be considered. The question whether the firm was genuine or not is a question of fact and cannot be agitated in this reference. In view of this position, it is not necessary for this court to consider the correctness of the decision of this court in Ramchand Nawalrai v. CIT [1981] 130 ITR 826.