COMMISSIONER OF WEALTH TAX Vs. NARENDRA KUMAR SURANA

JUDGEMENT

(1.) THIS application under S. 27(3) of the WT Act, 1957 ('the Act'), by the CWT is for a direction the Tribunal to state the case and refer certain question of law said to arise out of the Tribunal's order on the CWT's application to the Tribunal under S. 27(1) the questions relating to exemption under s. 5(1)(xxxii) and S. 5(1)(iv) of the Act have already been referred by the Tribunal to this Court for its decision. That is D.B. WT Ref. No. 41 of 1987. The surviving questions now are only with regard to the applicability of r. 2B(2) of the WT Rules, 1957 ('the Rules'), and determination of the question whether the firm Mannalal Nirmal Kumar & Co., Jaipur is merely an extension of Hazarimal Milapchand Surana or a distinct and separate firm.

(2.) THE relevant assessment year is 1979-80 In our opinion, the question of applicability of r. 2B(2) does raise a question of law as indicated by us in CWT vs. Mannalal (D.B. Ref. No. 3 of 1987). For the same reasons a direction to refer that question should be given in the present case also. We are also of the opinion that the question whether the two firms are in substance the same or they are distinct entities raises a question of law inasmuch as it involves application of certain principles of law to the facts found proved by the Tribunal. Accordingly, this application should be allowed in respect of both these questions.