Law: Income Tax Act, 1961

Section: 256,263

(a) Income-tax---Reference---Revision--Appeal---Merger of order of Assessing Officer in appellate order---No attempt by Revenue to show that entire order of A.O. had not merged in appellate order---Tribunal finding that there had been a total merger and setting aside order of revision---No question of law arose--¬Indian Income Tax Act, 1961, Ss.256 & 263. Under section 256(2) of the Income Tax Act, 1961, the High Court, if not satisfied with the correctness of the decision of the Tribunal, could give a direction to the Tribunal for stating the case and referring the questions of law for the opinion of the High Court. At this stage it is not open to the applicant to raise fresh grounds before the High Court. Held, dismissing the application to direct reference, that no contention was raised by the Revenue before the Tribunal to the effect that the total order of the Assessing Authority did not fall for consideration before the Commissioner of Income-tax (Appeals). No attempt was made before the, Tribunal on behalf of the Revenue to point out such, of those specific aspects of the Assessing Authoritys order, which had not been considered by the Commissioner of Income-tax. (Appeals) so as to justify the order of the Commissioner of Income-tax passed under section 263 of the Act. The Tribunal had categorically found that the entire order of the Assessing Authority had fallen for consideration before the Commissioner of Income-tax (Appeals) and, as such, the entire order of the Assessing Authority, dated September 19, 1989, had merged with the order of the Commissioner of Income-tax (Appeals), dated February 28, 1992. That being the finding of fact, the question whether the Tribunal was justified in setting aside the order of the Commissioner of Income-tax (Appeals) could not be referred. CIT v. Shri Arbuda Mills Ltd. (1998) 231 ITR 50 (SC) ref. (b) Income-tax--- ----Reference---Application to direct reference---New ground cannot be raised at that stage ---Indian Income Tax Act, 1961, S.256. JUDGMENT DR. MOTILAL B. NAIK, J.---This I.T.C. is filed under section 256(2) of the Income Tax Act, 1961, against the decision of the Income-tax Appellate Tribunal,…

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