HANMANTRAM RAMNATH Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This reference must go back to the Appellate Tribunal for the finding of further facts. As this is the second reference we have been constrained to send back out of the last ten which have come before us, and as in these cases not only is public time and money wasted, but there is also obviously a hardship) cast upon the assessees, it is in my opinion necessary that certain matters should be stated for the guidance of the Appellate Tribunal in preparing future cases.

(2.) Section 66 of the Indian Income-tax Act is the section under which these references are made, and by Sub-section (1) of that section it is provided: Within sixty days of the date upon which he is served with notice of an order under Sub-section (4) of Section 33, the assessee or the Commissioner may, by application in the prescribed form, accompanied where application is made by the assessee by a fee of one hundred rupees, require the Appellate Tribunal to refer to the High Court any question of law arising out of such order, and the Appellate Tribunal shall within ninety days of the receipt of such application draw up a statement of the case and refer it to the High Court. Pausing there for a moment, it is to be observed that all that is to be referred to the High Court is a question of law. Sub-section (4) of Section 66 is as follows: If the High Court is not satisfied that the statements in a case referred under this section are sufficient to enable it to determine the question raised thereby, the Court may refer the case back to the Appellate Tribunal to make such additions thereto or alterations therein as the Court may direct in that behalf.

(3.) As the Appellate Tribunal is the ultimate fact-finding authority, it is incumbent upon it to make full and proper findings of fact in order that this Court, which is only concerned with questions of law, may fully appreciate all the relevant facts and be in a position to deal with such questions as are referred to it.