COMMISSIONER OF INCOME TAX Vs. MAHENDRA SINGH

JUDGEMENT

(1.) THIS is a reference application under Section 256(2) of the Income-tax Act, 1961, at the behest of the Commissioner of Income-tax, Jodhpur, asking this High Court, on being satisfied with the incorrectness of the decision of the Appellate Tribunal, directing the Appellate Tribunal to state the case and refer it to this court.

(2.) FOUR questions of law have been indicated for the purpose of such reference :

(3.) THE Department had filed an application under Section 256(1) of the Income-tax Act for making a reference of the aforesaid four questions. THE Tribunal has rejected the application on the ground that questions Nos. (i) and (ii) no doubt arise, out of the order of the Tribunal, but they are not questions of law, fit for reference. For question No. (iii), the Tribunal came to the conclusion that in view of the Rajasthan High Court judgment rendered in Multimetals' case [1991] 187 ITR 98, the question stands concluded and hence though a question of law arises, it is not fit for reference to the High Court. THE Tribunal further observed that so far as question No. (iv) is concerned, it does not arise out of the Tribunal's order though it is a different matter, i.e., the subject-matter of question No. (iv) may or may not be challenged before the High Court by way of proper writ.