1991 (11) TMI 116 - AT - Income Tax

Summary

Issues:
1. Whether a single reference application is maintainable for penalties imposed under sections 271(1)(c), 273(2)(b), and 271(1)(a) for the assessment year 1980-81.
2. Whether the decision in the case of Kusum Ansal v. CIT [1991] 190 ITR 24 (FB) justifies a single reference application for common questions of law arising from a consolidated order.
3. Whether the statutory requirement of filing separate reference applications for separate issues and assessment years under section 256(1) overrides any judicial decision allowing a single reference application.
4. Whether the absence of a fee requirement for the Income-tax Department to file reference applications justifies a different treatment for the Revenue compared to the assessees.

Analysis:
1. The Revenue filed a single reference application against a consolidated order of the Tribunal for penalties under sections 271(1)(c), 273(2)(b), and 271(1)(a) for the assessment year 1980-81. The Tribunal rejected the single reference application, emphasizing the statutory requirement of filing separate reference applications for separate issues and assessment years as per Rule 48 read with Form No. 37 of the Income-tax Rules, 1962. The Tribunal held that the Delhi High Court decision in Kusum Ansal did not consider the statutory aspect of Form No. 37, which mandates separate applications for each issue and year.

2. The Tribunal highlighted the mandatory fee requirement of Rs. 125 for each reference application by an assessee, which has been waived for the Income-tax Department. Despite the absence of a fee requirement for the Department, the Tribunal reasoned that allowing a single reference application for various years and issues would contravene legal provisions and lead to discrimination. The Tribunal emphasized that separate reference applications are necessary for distinct issues like penalties under sections 271(1)(c), 273(2)(b), and 271(1)(a) for proper adjudication.

3. Citing precedents like J.K. Agents (P.) Ltd. v. CIT [1972] 86 ITR 793 (UP) and Dr. Ishwari Prasad v. CIT [1983] 143 ITR 789 (All.), the Tribunal reiterated that cases involving different assessees or assessment years require separate reference applications, even if disposed of by a consolidated order. The Tribunal emphasized that distinct operative orders for different cases or assessment years necessitate separate applications to ensure proper consideration of each issue. Consequently, the Tribunal concluded that a single reference application under section 256(1) is not maintainable and rejected the Revenue's application.