2004 (5) TMI 25 - HC - Income Tax

Question of law grant of registration - Perusal of the two orders of the Tribunal, i.e., the order passed in the second appeal and the one passed by dismissing the application made under section 256(1) of the Act would show that no question of law is involved in this case - In our opinion, the grant of registration does not in itself involve any question of law as such. Moreover, in this case it does not involve any interpretation of sections 185 to 187 of the Income-tax Act, nor does it involve any question of law as such on admitted facts - We are of the view that the Tribunal was right in rejecting the application made by the Revenue under section 256(1) of the Act and hence, we do not find any merit in this application. Application dismissed

Issues:
Grant of registration to the assessee under Income-tax Act, Section 256(1) reference application by Revenue, Interpretation of sections 185 to 187 of the Income-tax Act, Merit of the Revenue's application under section 256(2) of the Act.

Grant of Registration to the Assessee:
The High Court analyzed the issue of grant of registration to the assessee under the Income-tax Act. The court noted that the registration was already granted by the authorities based on the facts on record. The court emphasized that the mere grant of registration does not inherently involve any question of law. Additionally, the court highlighted that in the present case, the grant of registration did not require an interpretation of sections 185 to 187 of the Income-tax Act, nor did it involve any question of law based on admitted facts. Consequently, the court concluded that since the issue primarily pertained to facts and lacked any legal question, there was no basis to allow the application or refer the matter.

Section 256(1) Reference Application by Revenue:
The judgment addressed the Revenue's application under section 256(1) of the Income-tax Act seeking a reference to the High Court on certain legal questions arising from the Tribunal's order. The Tribunal had dismissed the Revenue's application, stating that no referable question of law emerged from its order, which was considered a factual finding aligned with the Supreme Court's decision. Upon hearing both counsels and reviewing the case record, the High Court concurred with the Tribunal's decision to reject the Revenue's application under section 256(1) of the Act. The court emphasized that a review of the Tribunal's orders revealed no legal question at issue, indicating that the matter primarily involved factual considerations rather than legal interpretations.

Interpretation of Sections 185 to 187 of the Income-tax Act:
The judgment did not find any necessity for interpreting sections 185 to 187 of the Income-tax Act concerning the case at hand. The High Court observed that the issue did not entail any legal question or require an analysis of the mentioned sections based on the facts presented. The court determined that the application lacked merit as it did not involve any legal complexities or questions related to the specified sections of the Income-tax Act. Consequently, the court dismissed the application as the issue primarily revolved around factual aspects rather than legal intricacies.

Merit of the Revenue's Application under Section 256(2) of the Act:
The High Court deliberated on the Revenue's application under section 256(2) of the Income-tax Act, which sought a reference to the court on legal questions arising from the Tribunal's order. After considering arguments from both parties and examining the case record, the court affirmed the Tribunal's decision to dismiss the Revenue's application under section 256(1) of the Act. The court reiterated that the issue lacked any legal dimension and was predominantly factual in nature, leading to the dismissal of the application under section 256(2) of the Act. The court concluded that since no legal questions were involved, there was no justification for allowing the application or initiating a reference, thereby dismissing the application accordingly.

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