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of <h1>High Court emphasizes referral process for legal questions in tax matters, declines to address new issues.</h1> The High Court held that it could only address questions referred by the Tribunal and not introduce new ones based on case details. The Court emphasized ... High Court Reference Issues:1. Valuation of construction cost for a cinema theatre.2. Competency of the Appellate Tribunal to address uncontested issues.3. Reframing of questions by the High Court based on facts presented.Analysis:1. The case involved an assessee firm constructing a cinema theatre, claiming the cost of construction at Rs. 6,45,392. Discrepancies arose when the Departmental valuer estimated the cost at Rs. 9,98,000, leading to an addition of Rs. 4,48,835 as unexplained investment. The Commissioner of Income-tax (Appeals) adjusted the cost to Rs. 7,70,000, denying certain deductions claimed by the assessee. The Tribunal, however, held that the valuation report did not include the value of foundations and roof, offsetting the claimed deductions. The main issue was whether the Tribunal could address aspects not contested by either party during proceedings.2. The High Court agreed that the referred question did not align with the actual issue of the Tribunal's competency to address uncontested matters. The counsel argued for reframing the question based on the real dispute arising from the facts presented. However, the Court rejected this argument, emphasizing that it could only answer questions referred by the Tribunal and not introduce new ones based on the case's details. The Court highlighted the need for questions to be raised through the reference process.3. The Court cited precedents to support its decision, clarifying that it could not reframe questions independently based on the case's facts. It emphasized that the power of the Court was limited to answering questions referred by the Tribunal. The Court concluded that since the question referred was purely factual, it declined to answer it, leading to the disposal of the case without costs. The judgment highlighted the procedural requirements for raising and addressing legal questions in tax matters, emphasizing the importance of adherence to the reference process.
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