COMMSSIONER OF INCOME TAX Vs. HARYANA MINERALS LTD

JUDGEMENT

(1.) THIS petition filed under Section 256(2) of the Income Tax Act, 1961 (for brevity 'the Act') challenges order dated 28.7.1998 passed by the Income Tax Appellate Tribunal, Delhi Bench (D), New Delhi (for brevity 'the Tribunal') in RA No. 16/Del/98 dismissing the application filed by the Revenue under Section 256(1) of the Act. The Revenue has claimed that the following two questions of law deserved to be referred for the opinion of this Court and would emerge from the order dated 3.10.1997 passed by the Tribunal in ITA No. 3957/Del/90 in respect of the assessment year 1988 -89:

(2.) WHETHER on the facts and in the circumstances of the case, the Hon'ble Tribunal was right in law in giving retrospective effect to the insertion made in Sub clause (ii) of Clause (b) of Sub section (2) of Section 80HHC, by Finance (No.2) Act, 1991 w.e.f. 1.4.1991 ?.

(3.) AFTER hearing learned Counsel for the Revenue we find that question No. 1 has been answered in favour of the Revenue on the basis of the judgement of Hon'ble the Supreme Court in the case of Gem Granites v. Commissioner of Income tax Tamil Nadu (2005) : 26 ITR 1. The observations of the Division Bench in that regard reads as under: