S.C : Whether, on the facts and circumstances of the case, the learned Tribunal is right in law in quashing the assessment proceedings for the asst. yr. 1985-86 reopened under s. 147(a) of the IT Act, 1961 ?

Supreme Court Of India

CIT vs. J.K. Beri

Section 256(2)

Asst. Year 1985-86

S.P. Bharucha & V.N. Khare, JJ.

Civil Appeal No. 3912 of 1999

12th September, 2000

ORDER

BY THE COURT :

The High Court declined to call for a reference of the following question : “Whether, on the facts and circumstances of the case, the learned Tribunal is right in law in quashing the assessment proceedings for the asst. yr. 1985-86 reopened under s. 147(a) of the IT Act, 1961 ?” It said so because, on its reading, “the findings recorded by the Tribunal are findings of facts based on appreciation of evidence. We fully agree with the conclusions arrived at.”

2. The High Court was entirely in error in coming to the conclusion that the findings of the Tribunal were findings of fact. This is evident from a perusal of the order of the Tribunal and, more particularly the following sentences : “Thus, it is seen that none of the reasons mentioned by the AO was recorded by him for reopening the assessment………” and “Since we have quashed that reassessment on the legal ground alone, we do not consider it proper to adjudicate the issues raised………”. Clearly, a question of law arises and the Tribunal is directed to refer to the High Court that question for its consideration, after drawing up a statement of case. The civil appeal is allowed accordingly. No order as to costs.

[Citation : 248 ITR 5]

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