1987 (7) TMI 36 - HC - Income Tax

Summary

Issues:
1. Refusal to refer ten questions of law to the High Court by the Tribunal.
2. Correctness of the Tribunal's decision on various issues raised by the Commissioner of Income-tax.

Analysis:
1. The High Court was approached by the Commissioner of Income-tax to refer ten questions of law arising from the Tribunal's orders in a specific case. However, the Tribunal only referred one question and declined the other nine. The High Court dismissed the application seeking reference of the remaining questions, stating that no further questions of law arose from the Tribunal's order. The Court provided brief reasons for its decision, ultimately concluding that the application had to be dismissed.

2. The first question concerned the deletion of a payment made under a Voluntary Retirement Scheme. The Tribunal found that the workers were employees of the assessee, not the entity to whom the payment was made, thus entitling the assessee to the deduction. The Court held that the Tribunal's decision was in line with the Supreme Court's ruling and did not require further reference.

3. The second question revolved around the payment of a sum not considered a penalty. The Tribunal determined that the payment was not a penalty under any statute or agreement, leading to the conclusion that no question of inadmissibility of the deduction arose.

4. The third question addressed payment made under a collusive arrangement. The Tribunal found no evidence of collusion and held that the services were rendered, concluding it as a question of fact with no legal issue.

5. The fourth question involved the deduction of commission accrued in a specific assessment year. The Tribunal clarified that the commission accrued during the relevant accounting year, dismissing the need for a legal reference.

6. The fifth question pertained to a commission paid for genuine business needs. The Tribunal confirmed that services were rendered as per the agreement, emphasizing it as a factual matter without a legal question.

7. The sixth question focused on the payment of commission and its compliance with tax provisions. The Tribunal's decision to allow the entire commission was based on factual assessment, not raising any legal query.

8. The seventh question dealt with the valuation of closing stock, which the Tribunal upheld based on factual findings, not warranting a legal reference.

9. The eighth question concerned the deduction of sales tax, which the Tribunal allowed in line with Supreme Court precedent, determining the deduction as permissible without the need for further legal scrutiny.

10. The ninth question regarding retrospective amendment applicability was not pressed by the petitioner, citing a Supreme Court decision, leading to its dismissal without a reference. The High Court ultimately concluded that none of the questions warranted a reference, dismissing the application with no order as to costs.