Law: Income Tax Act, 1961

Section: 143

Income-tax-----Reference---Revision by Commissioner---Finding by Tribunal that assessments were not erroneous or prejudicial to the interests of Revenue--¬Tribunal justified in setting aside order of revision---No question of law arises for reference. Orders of assessment for the assessment years 1983-84 to 1985-86 were set aside and orders of revision were passed basically on three grounds, namely, (i) that the Income-tax Officer had accepted the initial capital investment and income versions for the three years without making any inquiry; (ii) that the factum of certain loans advanced by the assessee should have been looked into in all its ramifications. It was also observed that the said loans were advanced by the assessee after winding up her business; and (iii) that no details of sundry debtors, cash in hand and stocks were given in the returns, or in the accompanying statements. The Tribunal, however, found that there was no fresh capital investment in the years in dispute and whatever investment was there had been made in the earlier year, namely, in the assessment year 1982-83. Another finding of the Tribunal was that the assessee had not wound up her business of advancing loans, as held by the Commissioner. In fact, the assessee was being assessed for future years including the year 1987-88. The Tribunal set aside the orders of revision. On an application to direct reference: Held, dismissing the application, that the question whether an assessment order, on a given set of facts, is erroneous or not, is essentially a question of fact. A finding on that question cannot be interfered with unless it is based on no material or the finding is arbitrary. In the instant case, the decision of the Tribunal was based on relevant facts and on consideration and appreciation of the material brought before it. The order of the Tribunal did not give rise to a question of law. JUDGMENT R.K. GULATI, J: --These are three applications under section 256(2) of the Income-tax Act, 1961 (for short "the Act"), relating to the assessment years 1983-84 to 1985-86 and arise from a common order passed by the Income-tax Appellate Tribunal, 'D' Bench, New Delhi. The assessments for…

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