CIT v. Dhampur Sugar Mills Co. Ltd.

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The Tax Publishers2004 TaxPub(DT) 1868 (All-HC) : (2004) 270 ITR 0576 : (2005) 142 TAXMAN 0468 CIT v. Dhampur Sugar Mills Co. Ltd. () INCOME TAX --Revision under s. 263----REVISABLE ORDEROrder passed under section 144B-- Catch Note: In view of amendment of clauses (a) and (c) of Explanation to section 263, with effect from 1-6-1988 the CIT could revise an assessment order passed under section 144B on or before 1-6-1988. Further, that part of the order which was not subject matter of appeal could also be revised. Ratio: Order under section 144B could be revised, which was passed on or before 1-6-1988. Further that part of the order which was not subject matter of appeal could also be revised as the same was not merged in order passed by CIT(A). Case Law Analysis: Followed : CIT v. Shm Arbuda Mills Ltd. (19981231 ITR 50 (SC); CIT v. Jaykumar B. Patil (1999) 236 ITR 469 (SC); CIT v. Mefisana District Cooperative Milk Producers Union Ltd. (2003) 263 ITR 645 (Guj); CIT v. Span International (2004) 270 ITR 538 (All), T. N. Civil Supplies Corporation Ltd. v. CIT (2003) 260 ITR 82 (SC), Decision: In revenue's favour. Date of Judgment: 26 August 2004 Assessment Year: 1976-77 Cases Referred: CIT v. Camco Colour Co. (2002) 254 ITR 565 (Bom) and Commr. of Customs v. Indian Oil Corporation Ltd. (2004) 2 RC 586 Income Tax Act, 1961 Section 263 Income Tax Act, 1961 Section 144B INCOME TAX --Reference----GENERAL PRINCIPLESmall tax effect--Opinion of High Court-- Catch Note: The assessee contended that the CBDT has issued circular directing revenue not to file appeal under section 260A/reference under section 256 before the High Court involving tax of not more than Rs. 2.00 lakhs therefore, court should decline to answer the question of law referred at the instances of revenue. Held : Contention of assessee not acceptable. In the absence of any request or application having been made by the party at whose instance the reference has been made neither it would be appropriate nor proper for the court to give its opinion. Ratio: In the absence of any request or application having been made by the party at whose instance the reference has been made neither it would be appropriate nor proper for the court to give its opinion in a case where tax effect is not more than Rs. 2.00 lakhs in view of CBDT Circular. Held: There cannot be any dispute that the circulars issued by the Central Board of Direct Taxes are binding upon the Income Tax Department as held by the Apex Court in the cases of Mathew M. Thomas (1999) 236 ITR 691 and Indian Oil Corporation Ltd. (2004) 267 ITR 272 (SC). However, it is for the court to permit withdrawal of pending references. The question of law has been referred for the opinion to this court and in the absence of any request or application having been made by the party at whose instance the reference has been made, neither it would be appropriate nor proper for the court to decline to give its opinion. Thus, the submission for the assessee that the court should decline to answer the question of law referred to it cannot be accepted.[Para 5] Case Law Analysis: Applied : Commr. of Customs v. Indian Oil Corporation Ltd. (2004) 2 RC 586, Mathew M. Thomas v. CIT (1999) 236 ITR 691 (SC), Decision: In revenue's favour. Date of Judgment: 26 August 2004 Assessment Year: 1976-77 Cases Referred: CIT v. Camco Colour Co. and Commr. of Customs v. Indian Oil Corporation Ltd. (2004) 2 RC 586 SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2004 TaxPub(DT) 1868 (All-HC) : (2004) 270 ITR 0576 : (2005) 142 TAXMAN 0468

CIT v. Dhampur Sugar Mills Co. Ltd. ()

INCOME TAX

--Revision under s. 263----REVISABLE ORDEROrder passed under section 144B--

Catch Note:

In view of amendment of clauses (a) and (c) of Explanation to section 263, with effect from 1-6-1988 the CIT could revise an assessment order passed under section 144B on or before 1-6-1988. Further, that part of the order which was not subject matter of appeal could also be revised.

Ratio:

Order under section 144B could be revised, which was passed on or before 1-6-1988. Further that part of the order which was not subject matter of appeal could also be revised as the same was not merged in order passed by CIT(A).

Case Law Analysis:

Followed : CIT v. Shm Arbuda Mills Ltd. (19981231 ITR 50 (SC); CIT v. Jaykumar B. Patil (1999) 236 ITR 469 (SC); CIT v. Mefisana District Cooperative Milk Producers Union Ltd. (2003) 263 ITR 645 (Guj); CIT v. Span International (2004) 270 ITR 538 (All), T. N. Civil Supplies Corporation Ltd. v. CIT (2003) 260 ITR 82 (SC),

Decision:

In revenue's favour.

Date of Judgment:

26 August 2004

Assessment Year:

1976-77

Cases Referred:

CIT v. Camco Colour Co. (2002) 254 ITR 565 (Bom) and Commr. of Customs v. Indian Oil Corporation Ltd. (2004) 2 RC 586

Income Tax Act, 1961 Section 263

Income Tax Act, 1961 Section 144B

INCOME TAX

--Reference----GENERAL PRINCIPLESmall tax effect--Opinion of High Court--

Catch Note:

The assessee contended that the CBDT has issued circular directing revenue not to file appeal under section 260A/reference under section 256 before the High Court involving tax of not more than Rs. 2.00 lakhs therefore, court should decline to answer the question of law referred at the instances of revenue. Held : Contention of assessee not acceptable. In the absence of any request or application having been made by the party at whose instance the reference has been made neither it would be appropriate nor proper for the court to give its opinion.

Ratio:

In the absence of any request or application having been made by the party at whose instance the reference has been made neither it would be appropriate nor proper for the court to give its opinion in a case where tax effect is not more than Rs. 2.00 lakhs in view of CBDT Circular.

Held:

There cannot be any dispute that the circulars issued by the Central Board of Direct Taxes are binding upon the Income Tax Department as held by the Apex Court in the cases of Mathew M. Thomas (1999) 236 ITR 691 and Indian Oil Corporation Ltd. (2004) 267 ITR 272 (SC). However, it is for the court to permit withdrawal of pending references. The question of law has been referred for the opinion to this court and in the absence of any request or application having been made by the party at whose instance the reference has been made, neither it would be appropriate nor proper for the court to decline to give its opinion. Thus, the submission for the assessee that the court should decline to answer the question of law referred to it cannot be accepted.[Para 5]

Case Law Analysis:

Applied : Commr. of Customs v. Indian Oil Corporation Ltd. (2004) 2 RC 586, Mathew M. Thomas v. CIT (1999) 236 ITR 691 (SC),

Decision:

In revenue's favour.

Date of Judgment:

26 August 2004

Assessment Year:

1976-77

Cases Referred:

CIT v. Camco Colour Co. and Commr. of Customs v. Indian Oil Corporation Ltd. (2004) 2 RC 586