Law: Income Tax Act, 1922

Section: 66,66(2)

Income-tax Act (XI of 1922)---S. 66(2)--Reference--Income-tax Appellate Tribunal having ordered remand of case, was seized of the matter and was yet to decide questions formulated for reference afresh--Held, it appeared pre-posterous to adjudicate upon those questions which so far had not been decided finally by the Tribunal itself and there was no conclusive finding of the Department on these questions either--It therefore, would be a futile exercise to examine the validity of proposed questions which may or may not arise in the final order passed by the Tribunal. ORDER FALAK SHER J.--M/s. New Qaiser Engineering Company, Lahore, a registered firm and assessee to income-tax, has moved this reference application under section 62(2) of the Income-tax Act, 1922 (hereinafter referred to as Act) against order, dated 25-3-1985 of the Income-tax Appellate Tribunal, Lahore whereby the latter rejected, petitioner's application under section 66(1) of the aforementioned Act to refer the questions of law formulated by the petitioner in his application to this Court for answer. 2. The facts in brief giving rise to this petition are that the petitioner-firm in assessment return for the year 1977-78 declared undisclosed income at Rs.20,000 and paid the tax on the concessional rate of 30% as laid down under section 3-C of the Act. The Income-tax Officer noticed significant difference between the income declared by the petitioner and the income-tax assessed during the preceding 9 years and required the assessee to pay the tax of 30% on the balance amount of Rs.1,00,000 as the claim of intangibles was outside the scope of declaration of undisclosed income under section 3-C of the Act. He accor8ingly added the amount to the income under section 4(2-A) of the Act, as he was not satisfied with the explanation given by the assessee. On appeal preferred by the petitioner the Assistant Appellate Commissioner upheld the order of the Income-tax Officer with observation that the amount remaining in the hand of the assessee for a period of ten years had no reasonable explanation. Consequently he added the amount to assessee's income. The assessee preferred further appeal to the Income-tax…

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