1985 (6) TMI 28

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....issioner of Income-tax, Gujarat, the following question has been referred to us for our opinion: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the interest of Rs. 35,456 paid to Shri Amratlal Hargovandas, Hindu undivided family account, by the assessee-firm in which Shri Amratlal Hargovandas was a partner in his individual capacity could no....

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....eing Income-tax Reference No. 313/76, to a Larger Bench, which ultimately overruled the decision in Sajjanraj Divanchand's case [1980] 126 ITR 654 (Guj). The decision of the Full Bench in Chhotalal & Co.'s case is reported in [1984] 150 ITR 276. The question which has been raised is that the Supreme Court has rejected the Special Leave Petition preferred by the Commissioner, against the decision o....

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....t (see Mundrika Prasad Sinha v. State of Bihar, AIR 1979 SC 1871). The Supreme Court has adopted the principles which were followed by the judicial Committee of the Privy Council in granting special leave to appeal. Such special leave will, therefore, be granted only sparingly and in exceptional cases (see Bharat Bank Ltd. v. Employees of Bharat Bank Ltd., AIR 1950 SC 188, and Madhav Hayawadanrao ....

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....dditional CIT v. New Jehangir Vakil Mills Co. Ltd. [1979] 117 ITR 849 at 854). In any case, it would be unsafe to say that the effect of not granting the special leave, even where the court has in its order refusing to grant the leave stated that special leave petition was dismissed on merits, since there is no practice to state the reasons while refusing the leave that it would be tantamount to c....