1983 (3) TMI 114 - AT - Income Tax

Summary

Issues:
1. Whether the Tribunal should refer an additional question of law raised by the assessee regarding the calculation of deduction permissible for certain assessment years.
2. Whether the Tribunal has the authority to allow the assessee to raise additional questions of law after the initial reference application.
3. Whether the Tribunal can condone the delay in filing a reference application beyond 30 days.

Analysis:

Issue 1:
The assessee sought to raise an additional question of law regarding the calculation of deduction permissible for certain assessment years. The departmental representative objected to this, arguing that the new question was not included in the original application and would amount to a fresh reference application, which could be barred by limitation. The representative relied on the Punjab High Court's decision in Punjab Distilling Industries Ltd. v. CIT [1952] 22 ITR 232, stating that additional questions cannot be raised if not included in the initial application.

Issue 2:
The learned counsel for the assessee contended that the assessee was not making a fresh application but merely requesting the Tribunal to refer an additional question arising from the Tribunal's order. Citing the Supreme Court's decision in CIT v. V. Damodaran [1980] 121 ITR 572, the counsel argued that an applicant can raise further questions before the reference is made. The Tribunal can allow this if the questions relate to the issues already considered. The counsel emphasized that the applicant can ask for additional questions at the time of the hearing.

Issue 3:
The Tribunal analyzed the facts and contentions regarding the reference of the additional question. It differentiated between appeals and references to the High Court, noting that the Tribunal has limited power to condone only a 30-day delay in making a reference application. The Tribunal opined that while an applicant can raise further questions on the same issue, raising a completely new issue would require a fresh application, which may be barred by limitation. In this case, as the additional question raised by the assessee was unrelated to the original issue of development rebate, the Tribunal rejected the request to refer the additional question, emphasizing that the applicant must decide on the issues to take to the High Court within the permitted time frame.

This detailed analysis covers the issues raised in the judgment, providing a comprehensive understanding of the Tribunal's decision regarding the reference of additional questions of law in the context of the Income-tax Act, 1961.