COMMISSIONER OF INCOME TAX Vs. G T ENTERPRISES

JUDGEMENT

(1.) THE Revenue, in the case of the assessee G.T. Enterprises, Udaipur, for the asst. yr. 1981-82, has moved this application under S. 256(2) of the IT Act and has prayed that the Tribunal, Jaipur Bench, Jaipur may be directed to refer the following questions of law for the opinion of this Court :

(2.) THE assessee, G.T. Enterprises, which derived income from dealings in the land, filed its return for the asst. yr. 1981-82 declaring the loss of Rs. 2,87,022. The assessment was completed under s. 143(3) of the Act on the returned loss. While completing the assessment, the assessing authority allowed the claim of development expenses claimed by the assessee. The CIT, Jaipur, exercising its power under S. 263 of the Act, set aside the order passed by the Assessing Officer (AO) and directed the AO to make fresh assessment after giving adequate opportunity to be heard to the assessee. While setting aside the assessment made by the ITO, the CIT observed that "the assessment was completed without properly examining the claim of the development expenses".

(3.) AGGRIEVED with the order dt. 17th May, 1991 allowing the appeal filed by the assessee, the Revenue moved an application under S. 256(1) of the Act before the Tribunal to refer the three questions of law mentioned in the application (as mentioned in para 1 above). The Tribunal, by its order dt. 20th July, 1993 dismissed the application filed by the Revenue and refused to refer the questions of law mentioned in the application for the opinion of this Court on the ground that the findings recorded by the Tribunal are based on the appreciation of the relevant facts and material on record and are essentially the findings of fact which do not give rise to any question of law for reference. The Revenue, thereafter, moved the present application under S. 256(2) of the Act before this Court.