2003 (1) TMI 22 - HC - Income Tax

Whether, on the facts and in the circumstances of the case and in law the Income-tax Appellate Tribunal was justified in cancelling the order under section 263 of the Income-tax Act, 1961 - Tribunal found that the assessee maintained the books of account for repair and renovation of the building. It was found that while completing the assessment the Assessing Officer had not found any fault in the maintenance of the books of account. Thus, it held that the order passed by the Commissioner of Income-tax was unjustified - Tribunal was not correct in refusing to refer the question as set out in the application - we allow the application and direct the Tribunal to refer the question of law for the opinion of this court in accordance with law.

Summary

The High Court of Rajasthan allowed the application under section 256(2) of the Income-tax Act, 1961, directing the Income-tax Appellate Tribunal to refer a question for the court's opinion. The case involved discrepancies in the valuation of construction costs in a cinema building for the assessment year 1993-94. The Tribunal disagreed with the Commissioner of Income-tax's decision, citing a previous court ruling.