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1960 (3) TMI 7 - SC - Income TaxWhether the net dividend income of 47, 120 accrued to the assessee in the former Baroda State or whether it is income accrued or deemed to have accrued to the assessee in British India ? Whether the assessee is entitled to any concession under the Merged States (Taxation Concessions) Order 1949 with regard to the net dividend income of 47, 120 ? Held that - The objection of the assessee is well founded. The Tribunal did not address itself to the question whether the Concessions Order applied to the assessee. It decided the question of assessability on the short ground that the income had not arisen in Baroda but in British India. That aspect of the matter has not been touched by the Bombay High Court. The latter has on the other hand considered whether the Concessions Order applies to the assessee a matter not touched by the Tribunal. Thus though the result is the same so far as the assessment is concerned the grounds of decision are entirely different. The High Court exceeded its jurisdiction in going outside the point of law decided by the Tribunal and deciding a different point of law. The order of the High Court will therefore be set aside and the case will be remitted to the High Court to decide the question framed by the Tribunal. Appeal allowed.
Issues:
Jurisdiction of the High Court to frame and deal with a question of law not arising out of the Tribunal's order. Interpretation of Section 66 of the Income-tax Act regarding the High Court's jurisdiction. Applicability of the Merged States (Taxation Concessions) Order, 1949 to the assessee. Analysis: The judgment in question pertains to an appeal against an order and judgment of the High Court of Bombay, where the High Court reframed a question referred by the Appellate Tribunal and answered it. The appeal was filed by an assessee who was assessed to income tax for the assessment year 1950-51, including dividend income not brought into British India. The Tribunal held that the income did not accrue to the assessee in the Baroda State. The High Court reframed the question to consider the applicability of the Concessions Order to the assessee, which was answered in the negative on February 20, 1956. The High Court did not decide the accrual of income to the assessee. The assessee challenged the jurisdiction of the High Court to frame and decide on a question not arising from the Tribunal's order. The issue raised was whether the High Court had the authority to address a question not considered by the Tribunal, specifically regarding the applicability of the Concessions Order to the assessee. The Tribunal focused on the location of income accrual, while the High Court delved into the Concessions Order. The High Court's decision was based on a different aspect not touched upon by the Tribunal, leading to conflicting grounds for the assessment decision. The judgment emphasized that the High Court's jurisdiction under Section 66 of the Income-tax Act is limited to questions arising from the Tribunal's order, preventing the High Court from deciding on entirely new legal questions. The judgment underscored that the High Court's decision should align with the questions considered by the Tribunal, ensuring consistency and adherence to legal procedures. The High Court's expansion of the question beyond the Tribunal's scope was deemed as exceeding its jurisdiction. The judgment referenced relevant case law to support the interpretation of Section 66 and the limitations on the High Court's authority to decide on unrelated legal matters. Consequently, the High Court's decision was set aside, and the case was remanded to the High Court to decide the question framed by the Tribunal, with costs of the appeal to be considered in the reference to be heard by the High Court.
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