COMMISSIONER OF INCOME TAX Vs. BALU RAM

JUDGEMENT

(1.) ON an application under s. 256(1) of the IT Act, 1961, the Tribunal has referred the following question for the opinion of this Court :

(2.) THE assessee is a partner in the firm of M/s Madira Kraya Vikraya Sangh, Kota. In appeal filed by the firm, the Asstt. CIT allowed a loss of Rs. 12,91,250. THE assessee was partner in the M/s Madira Kraya Vikraya Sangh. As loss has been allowed in the firm, the assessee's share also comes in the loss. In the meantime, the assessee made a disclosure under s. 14(1) of the Voluntary Disclosure Scheme and paid taxes accordingly. THE share of the loss which comes to the share of the assessee, that resulted in refund of the tax already paid. THE assessee claimed that he is entitled for the refund of the part of the tax already paid. THE application under s. 154 of the Act moved by the assessee was rejected, holding that the assessee was not entitled for refund. In appeal before the Tribunal, the Tribunal directed that the assessee would be entitled to refund only when the appeal of the firm was finally decided in favour of the firm. THE Tribunal directed that the assessee be granted a refund of tax under the Voluntary Disclosure Scheme in the event of the firm ultimately succeeding in its claim to allow the loss of Rs. 12,91,250.