9911796707
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Issues:
1. Application under section 256(2) of the Income-tax Act, 1961 for direction to state the case and refer questions for opinion. 2. Assessment under section 143(3)/144B of the Act. 3. Appeal before Commissioner of Income-tax (Appeals) and Tribunal. 4. Notice under section 263 of the Act regarding deduction under section 80M. 5. Appeal against order under section 263 of the Act. 6. Application under section 256(1) dismissed for lack of referable questions. 7. Application under section 256(2) limited to the question of deduction under section 80M. Analysis: The judgment pertains to an application under section 256(2) of the Income-tax Act, 1961, filed by the assessee (State Bank of Indore) seeking direction to the Tribunal to state the case and refer specific questions for opinion. The questions raised included the correctness of setting aside the order of the Income-tax Officer under section 263 of the Act, application of a specific decision by the Income-tax Appellate Tribunal, allowance of deduction under section 80M on net dividend, and the exercise of revisional powers by the Commissioner under section 263. The Tribunal initially declined to refer the questions based on the amended provisions of section 80AA and a specific decision, but upon review, the High Court found that the question regarding deduction under section 80M did arise from the Tribunal's order. Consequently, the High Court directed the Tribunal to refer this specific question for consideration. The case involved the assessment of the applicant under section 143(3)/144B of the Act for the assessment year 1981-82. Following an appeal before the Commissioner of Income-tax (Appeals) and subsequently before the Tribunal, a notice was issued under section 263 of the Act questioning the deduction under section 80M. The applicant challenged this order under section 263 through an appeal before the Tribunal, which was dismissed. Subsequent applications under section 256(1) and 256(2) were made, with the latter being limited to the question of whether deduction under section 80M should have been allowed on net dividend. The High Court, after hearing arguments from both parties, concluded that this specific question warranted consideration and directed the Tribunal to refer it for opinion. The judgment highlights the procedural history of the case, including the various appeals and applications filed by the applicant in response to the order under section 263 of the Act. The High Court's decision to focus on the specific question of deduction under section 80M underscores the importance of clarifying this issue in light of the Tribunal's order. The judgment emphasizes the need for a thorough examination of the legal implications surrounding the deduction under section 80M and the correct application of relevant provisions and decisions in reaching a final determination.
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