Tribunal's power to remand for further facts upheld where share transfer genuineness and public transferability needed determination.

Proceedings under section 66(5) required the Tribunal to dispose of the case in conformity with the High Court's judgment, and in doing so it could exercise the same appellate powers available under section 33, including calling for further facts and remanding where necessary. The earlier reference had treated the real enquiry as extending beyond the timing of transfers to their genuineness, reality, character, and whether they showed free transferability to the public. As the record did not provide a satisfactory factual basis to decide those questions, the Tribunal was entitled to seek a report and remand the matter, and its jurisdiction was upheld against the assessee.

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Issues: Whether, in proceedings under section 66(5) of the Indian Income-tax Act, 1922, the Income-tax Appellate Tribunal was justified in remanding the matter to the Appellate Assistant Commissioner for a report regarding the transfer of shares.

Analysis: The Tribunal's duty under section 66(5) is to dispose of the case conformably to the High Court's judgment, and in doing so it exercises the same appellate powers that were available under section 33, including the power to seek further facts and to remand where necessary. The earlier reference had held that the relevant enquiry was not confined to transfers prior to the end of the previous year, but extended to the genuineness, reality, and character of transfers and whether they evidenced free transferability to the public. Since the record did not provide a satisfactory factual basis for deciding those questions, the Tribunal was entitled to call for a report so that the issue could be properly determined.

Conclusion: The Tribunal acted within its jurisdiction in remanding the matter for a report regarding the transfer of shares, and the question was answered in the affirmative against the assessee.

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