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High Court Of Delhi
SETH BANARSI DASS GUPTA - Appellant
Versus
COMMISSIONER OF INCOME TAX - Respondent
I.T.R. 68 of 1969
Decided On : 03/10/1978
INCOME TAX - REFERENCE - JURISDICTION OF HIGH COURT - BASIS FOR DETERMINATION - LOCATION OF OFFICE OF ASSESSING INCOME-TAX OFFICER - STANDING ORDER I OF 1954 AND STANDING ORDER I OF 1967 - INTERPRETATION - HIGH COURT OF ALLAHABAD HAS JURISDICTION TO ENTERTAIN THE REFERENCE AND NOT DELHI HIGH COURT.
Fact of the Case:
The assessee, a Hindu undivided family, filed two applications under Section 66 (1) of the Indian Income-tax Act, 1922, before the Appellate Tribunal, Delhi Bench, arising out of the Income-tax Appeals Nos. 1978 and 1979 of 1963-64, relating to the assessment years 1956-57 and 1957-58. Similarly, the Commissioner of Income-tax, Delhi (Central), New Delhi, filed two applications, R. A. Nos. 12 and 13 of 1968-69, arising out of the same Income-tax Appeals Nos. 1978 and 1979 of 1963-64, relating to the assessment years 1956-57 and 1957-58 under Section 66 (1) of the Act. By a common order, dated 28th March, 1969, the Appellate Tribunal referred seven questions of law to this Court as arising out of the orders of the Tribunal, dated 2nd March, 1968 in the aforesaid Income-tax Appeals Nos. 1978 and 1979 of 1963-64.
Finding of the Court:
The Court held that the basis for the jurisdiction of the Bench is adopted, instead of adopting the basis mentioned in Section 64 of the Act, as suggested in the decision of the Madras High Court in the case Commissioner of Income-tax, Madars v. S. Sivaramakrishna Iyer (Supra ).
Issues: Whether the Delhi High Court has jurisdiction to entertain the reference.
Ratio Decidendi: The Court observed that the jurisdiction of a Bench of the Appellate Tribunal is determined by the location of the office of the assessing Income-tax Officer and not by the place of business or residence of the assessee. The Court further observed that the basis for determining the jurisdiction of the High Court to which a reference is to be made should be the same as the basis for determining the jurisdiction of the Bench of the Appellate Tribunal. In the present case, since the Income-tax appeals had arisen out of the assessment orders of the Income-tax Officer at Meerut which is in the State of Uttar Pradesh, it is the High Court of Allahabad to which the reference should have been made and not the Delhi High Court.
Final Decision: The Court declined to answer the reference and returned the statement of case to the Delhi Bench for taking such appropriate action as it thinks fit in the light of this judgment.
( 1 ) THIS is a reference made by the Income-tax Appellate Tribunal, Delhi Bench a to this Court under Section 66 (1) of the Indian Income-tax Act, 1922 (hereinafter referred to as the Act ).
( 2 ) THE assessee, a Hindu undivided family of which the Karta is Seth Banarsi Dass Gupta, Meerut, filed two applications R. A. Nos. 945 and 946 of 1968-69, before the Appellate Tribunal, Delhi Bench a , under Section 66 (1) of the Act, arising Out of the Income-tax Appeals Nos. 1978 and 1979 of 1963-64, relating to the assessment years 1956-57 and 1957-58. Similarly, the Commissioner of Income-tax, Delhi (Central), New Delhi, filed two applications, R. A. Nos. 12 and 13 of 1968-69, arising out of the same Income-tax Appeals Nos. 1978 and 1979 of 1963-64, relating to the assessment years 1956-57 and 195 7-5 8 under Section 66 (1) of the Act.
( 3 ) BY a common order, dated 28th March, 1969. the Appellate Tribunal referred seven questions of law to this Court as arising out of the orders of the Tribunal, dated 2nd March, 1968 in the aforesaid Income-tax Appeals Nos. 1978 and 1979 of 1963-64. The said reference has been numbered in this Court as I. T. R. No. 68 of 1969. When the reference came up for hearing before us, Shri B. N. Kirptl, learned counsel for the Commissioner of Income-tax, Delhi (Central), New Delhi, raised a preliminary objection that this Court has no juris- diction to entertain the reference under Section 66 (1) of the Act in view of the facts of the case. For a proper appreciation of the objection, a few relevant facts have to be stated.
( 4 ) THE assessee is a Hindu undivided family consisting of Seth Banarsi Dass, the Karta, his wife, Shrimati Rammurti Devi, and his four sons, Seth Mohan Lal, Seth Brij Bhusan Lal, Seth Jatinder Lal and Seth Satinder Lal.
( 5 ) THE assessee filed its returns for the assessment years 1956-57 and 1957-58. The Income-tax Officer, Meerut, passed the assessment orders, dated 27th March, 1961, and 30th March, 1962, in respect of the aforesaid two assessment years.
( 6 ) AGGRIEVED by the said assessment orders, the assessee preferred appeal No. 26 of 1962-63 in respect of the assessment year 1956-57 and appeal No. 55 of 1962-63 in respect of the assessment year 1957- 58, to the Appellate Assistant Commissioner of Income-tax, Meerut. By his orders, dated 13th March, 1963, and 12th March, 1963, respectively, the Appellate Assistant Commissioner, Meerut, allowed the appeals partly.
( 7 ) IN so far as the said appellate orders were against it, the asses- see preferred appeals Nos. 1978 and 1979 of 1963-64, to the Income- tax Appellate Tribunal. By two orders, both dated 2nd March, 1968. the Appellate Tribunal, Delhi Bench allowed the appeals partly.
( 8 ) THEREUPON, as already stated, the assessee filed the applications, R. A. Nos. 945 and 946 of 1968-69, and the Commissioner of Income-tax, Delhi, (Central), New Delhi filed applications, R. A. Nos. 12 and 13 of 1968-69, under Section 66 (1) of the Act praying that the questions proposed by them respectively may be referred to this High Court. By its order, dated 28th March, 1969, the Appellate Tribunal, Delhi Bench, held that some of the questions proposed were questions of fact and declined to refer the said questions. It however, held that seven other questions were questions of law which arise of its impugned orders, and referred the same to this Court.
( 9 ) THE objection raised by Shri Kirpal is that all the members of the H. U. F. (Assessee) reside and carry on their business at Meerut, that the assessment orders were passed by the Income-tax Officer at Meerut, that the appeals therefrom were disposed of by the Appellate Asstt. Commissioner at Meerut, and that consequently, Meerut being in the State of Uttar Pradesh, the High Court to which the reference could be made by the Appellate Tribunal, would be the High Court of Allahabad and not the High Court of Delhi, even though the Appellate Tribunal, Delhi Bench, is situ
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