1996 (1) TMI 98

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....econsidering its decision dated July 18, 1983, for the assessment years 1976-77 and 1977-78 ? (2) Whether the Tribunal was right in law in disallowing the interest on the entire debit balances of the partners including opening balances ? (3) Whether the Tribunal was correct in law in allowing the Department's appeal against the law laid down by the Madhya Pradesh High Court in the case of Alok Paper Industries reported in [1982] 138 ITR 729 ? " The facts lie in a narrow compass. The applicant-assessee is a partnership firm registered under the Partnership Act and is assessed to income-tax in the status of a registered firm. In respect of the assessment for the assessment years 1978-79 (Miscellaneous Civil Case No. 141 of 1989) ; 19....

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....er passed in Miscellaneous Application No. 65/(Ind) of 1982 in respect of the earlier assessment years. The Tribunal thus ordered that the appeals for the assessment years 1978-79, 1980-81 and 1982-82 shall stand partly allowed and ordered that the appeal for the assessment year 1979-80 shall stand dismissed. The Department filed miscellaneous applications for rectification which were registered as Miscellaneous Application No. 3/(Ind) of 1986, for the assessment years 1978-79 to 1981-82 arising out of the ITA Nos. 15 to 18/(Ind) of 1984. These miscellaneous applications were allowed by order dated June 6, 1986. The assessee filed applications registered as RA Nos. 88 to 91/(Ind) of 1986 arising out of the order of the Tribunal in Miscellan....

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....l are based on appreciation of facts and as such they are not referable questions of law. In our view, it is ne cessary to decide whether or not the view taken by the Tribunal is in conflict with the decision rendered by this court ? It also seems necessary to consider the question whether or not the disallowance of the interest on the entire debit balances, including the opening balances, of the partners is legal and valid ? We have perused the orders of the Tribunal and considered the submissions and find that two questions do arise for reference. In the result, we call upon the Tribunal to state the cases pertaining to all these four assessment years and refer to this court the undernoted questions of law for its opinion : (i....