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Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Orders of - Whether Tribunal is bound to examine an appeal on merits and decide it one way or the other and cannot dismiss it without going into its merits - Held, yes Facts The AAC allowed relief to the assessee under section 80K in respect of dividend income from a company. The revenue filed second appeal before the Tribunal, which without examining the merits of the appeal dismissed the same only on the ground that the company had obtained similar relief under the Act. On reference, the revenue, contended that the Tribunal was in error in dismissing the appeal without at all examining its merits. Held If an appeal is filed under the Act in time, the Tribunal is bound to examine it on merits and decide it in one way or the other way. Even if the Tribunal felt that the appeals should be decided only after the disposal of the references relating to the company before the High Court then also it should have postponed the hearing of the appeals and taken them up for hearing after a decision was rendered in that reference. Whether that should be done or not was for the Tribunal to decide. Since in the instant case the Tribunal had not decided the appeals on merits, the Court declined to answer the question referred. K. Srinivasan for the Applicant. Order Puttaswamy, J. - As the parties and the questions that arise for determination in these cases are common, we propose to dispose of them by a common order. 2. In these references made under section 256(1) of the Income-tax Act, 1961 ('the Act'), the Tribunal, Bangalore Bench, at the instance of the revenue, has referred the following question of law for the opinion of this Court: "Whether in law and on the facts of the case, the Appellate Tribunal was right in holding that the assessee is entitled to relief under section 80K in respect of dividend income from U-Foam (P.) Ltd., Hyderabad ?" In order to appreciate the question referred to us, it is necessary in the first instance to notice the facts that are now in dispute. 3. For the assessment years 1968-69 and 1969-70 relevant to the accounting years ending on 31-3-1968 and 31-3-1969, the assessee…

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