1992 (7) TMI 147 - AT - Income Tax

Dismissal of Review Application on Retrospective Tax Proviso

BR. Packaging Industries. Versus Income-Tax Officers.

The Tribunal dismissed the miscellaneous application seeking a review based on the Patna High Court decision on the retrospective operation of the proviso ... High Court Judgment, Tribunal's Order Issues:- Consideration of Patna High Court decision on proviso to section 43B- Retrospective operation of proviso to section 43B- Tribunal's jurisdiction to review order- Conflict between High Court decisions on proviso to section 43BAnalysis:1. The assessee filed a miscellaneous application urging the Tribunal to consider the decision of the Patna High Court regarding the retrospective operation of the proviso to section 43B. The applicant sought a review of the Tribunal's order dated 12-3-1992 based on the Patna High Court decision. However, the Tribunal noted that the issue was already covered by consistent decisions of the Tribunal, and the Patna High Court judgment was not cited during the appeal hearing.2. The Tribunal clarified its stance on the issue, stating that if sales tax is paid within the statutory time under the Sales Tax Act, no disallowance under section 43B is required. It highlighted that the proviso to section 43B, effective from 1-4-1988, does not apply to the assessment year 1984-85. The Tribunal referenced the Delhi High Court's judgment in Sanghi Motors case, emphasizing that the proviso is not retrospective and only applies from 1-4-1988.3. The assessee presented the Tribunal with a decision in the case of FM v. United Engg. Works, where conflicting High Court judgments were balanced, and the ruling favored the assessee based on the Supreme Court's decision in CIT v. Vegetable Products Ltd. However, the Tribunal emphasized that the conflicting decisions between High Courts, particularly Delhi and Patna, led to a reliance on consistent Tribunal decisions rather than High Court rulings.4. The Tribunal highlighted the conflicting decisions between the Delhi High Court and Patna High Court regarding the operation of the proviso to section 43B. It noted that in such conflicting scenarios, the Tribunal's approach was to rely on its consistent decisions rather than High Court judgments. The Tribunal emphasized that the author of the United Engg. Works order, also involved in the current case, supported the Tribunal's consistent approach.5. The Tribunal concluded that it lacked the power to review its own orders, and the appropriate remedy for the assessee lay elsewhere, not through a miscellaneous application seeking a review.6. Ultimately, the Tribunal dismissed the miscellaneous application, maintaining its position based on consistent Tribunal decisions and the lack of jurisdiction to review its orders. The conflicting High Court decisions did not sway the Tribunal's reliance on its established approach in such matters.