Law:

Section:

Section 261 of the Income-tax Act, 1961 (Corresponding to section 66A of the Indian Income-tax Act, 1922) - Supreme Court - Appeals to - Assessee-firm was situated in Jaipur which at relevant period was outside taxable territories - In its business dealings with Government of India, assessee received cheques in Jaipur as price paid for goods supplied - Cheques were realised at Bombay, i.e. in taxable territories - Tribunal held that as cheques were encashed in Bombay, amounts covered therein were liable to tax - High Court, on reference, set aside assessments on ground that cheques having been received in Jaipur, amount thereof were received outside taxable territories - It further observed that there was no evidence to show how those cheques were sent, i.e by post or by hand - However, High Court granted certificates for appeal on grounds that cheques must be considered to have been sent by post in view of common course of usage in sending cheques and that a general question of great importance as to whether a presumption under 114 of Evidence Act, 1872 could be raised in circumstances of case and that such a question was likely to arise in many future cases not restricted to income-tax - Whether jurisdiction of High Court at stage of dealing with application for grant of certificate is limited only to considering whether any substantial question of law arose having due regard to material on record and discussion on facts and law contained in of High Court which dealt with appeal or reference or any other proceeding, as case may be -Held, yes - Whether Supreme Court should not be invited to decide any question of law much less substantial question of law purely in abstract but such question must reasonably arise on basis of material on record - Held, yes - Whether in dealing with grant of certificates High Court had no jurisdiction to go behind finding recorded in original disposing of reference and since on findings recorded by Tribunal and confirmed by High Court, no question of applying any presumption under section 114 of 1872 Act arose, consequently, issue of certificates by High Court was not proper - Held, yes FACTS The assessee-firm was situated in…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492