1995 (4) TMI 20 - HC - Income Tax

High Court orders Tribunal to refer legal questions on Income-tax Act 1961 for interpretation

The High Court directed the Income-tax Appellate Tribunal to refer questions of law to the court for interpretation of a provision of the Income-tax Act, ... Interpretation of section 37(3A) of the Income tax Act, 1961 - obligation to refer questions of law under section 256(1) of the Income tax Act, 1961 - reference to High Court by Income tax Appellate Tribunal - question of law v. question of fact - jurisdictional precedentInterpretation of section 37(3A) of the Income tax Act, 1961 - obligation to refer questions of law under section 256(1) of the Income tax Act, 1961 - question of law v. question of fact - jurisdictional precedent - Whether the Income tax Appellate Tribunal was obliged to make a reference to the High Court on questions of law concerning section 37(3A) of the Income tax Act, 1961. - HELD THAT: - The Tribunal had declined to refer the matter relying on a judgment of the Delhi High Court. The High Court held that, in the absence of a decision of the jurisdictional High Court, the Tribunal could not refuse a reference but was under an obligation to refer the questions of law for the opinion of the court. The Court further found that the controversy was not a question of fact because liability was sought to be determined only after interpretation of the provisions of section 37(3A). Consequently the Tribunal's reliance on an out of jurisdiction decision did not justify withholding a statutory reference under section 256(1), and a reference must be made to the appropriate High Court for determination of the questions of law set out in the Tribunal's reference application.The Appellate Tribunal is directed to make a reference to the High Court of the questions of law detailed in its application under sub section (1) of section 256 of the Income tax Act, 1961.Final Conclusion: The petition is disposed of by directing the Income tax Appellate Tribunal to refer the stated questions of law on the interpretation of section 37(3A) to the High Court under section 256(1), because the matter involves questions of law not questions of fact and no decision of the jurisdictional High Court exists to obviate such a reference. The High Court directed the Income-tax Appellate Tribunal to refer questions of law to the court regarding the interpretation of a specific provision of the Income-tax Act, 1961. The Tribunal was obligated to make the reference in the absence of a judgment from the jurisdictional court. The respondent did not appear after February 4, 1994. (Case Citation: 1995 (4) TMI 20 - PUNJAB AND HARYANA High Court)