Law:

Section:

Section 256, read with section 32, of the Income-tax Act, 1961 - Reference - Academic question - Assessment years 1968-69 and 1969-70 - Tribunal held that assessee was entitled to claim loss under section 32(1) for first time during reassessment proceedings - Whether issue involved was squarely covered by s of Bombay High Court in cases of New Kaiser-I-Hind Spg. & Wvg. Co. Ltd. v. CIT [1977] 107 ITR 760 and CIT v. Indian Rare Earth Ltd. [1990] 181 ITR 22 (FB) and, therefore, no referable question of law arose from order of Tribunal - Held, yes FACTS In the reassessment proceedings, the assessee, inter alia, made a claim for loss under section 32(1) for the first time. The ITO did not entertain the assessee's claim on the ground that such a claim was not made in the original assessment proceedings. On appeal, the Commissioner (Appeals) confirmed the order of the ITO. On second appeal, the Tribunal held that the assessee was entitled to claim loss under section 32(1) for the first time during the reassessment proceedings. It also rejected the revenue's reference application under section 256(1). On an application for reference under section 256(2): HELD The issue involved herein was squarely covered by the s of the Bombay High Court in New Kaiser-I-Hind Spg. & Wvg. Co. Ltd.'s case (supra) and Indian Rare Earth Ltd.'s case (supra) and, hence, no useful purpose would be served by directing the Tribunal to refer the question in dispute as question of law to the High Court. The reference application was, therefore, dismissed. CASES REFERRED TO New Kaiser-I-Hind Spg. & Wvg. Co. Ltd. v. CIT [1977] 107 ITR 760 (Bom.), CIT v. Indian Rare Earth Ltd. [1990] 181 ITR 22 (Bom.) (FB), CWT v. Ballarpur Industries Ltd. [1979] 118 ITR 711 (Bom.), CWT v. C. Ravindran [1977] 107 ITR 547 (Ker.), V. Jaganmohan Rao v. CIT [1970] 75 ITR 373 (SC) and Kevaldas Ranchhodas v. CIT [1968] 68 ITR 842 (Bom.). G.S. Jetly, Ms. Majula Singh and K.C. Sidhwa for the Petitioner. A.V. Sonde for the Respondent. JUDGMENT Sugla, J.-This is an application under section 256(2) of the Income-tax Act, 1961 ('the Act') by the department. It is the case of the department that the Tribunal ought to…

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