2006 (4) TMI 88

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..... llate order, the same need to be decided by this court in its reference jurisdiction conferred by section 256(1) - Tribunal is directed to make the reference to this court under section 256(1)
Judge(s) : DEEPAK VERMA., A. M. SAPRE. JUDGMENT This is an application made under section 256(2) of the Income-tax Act, 1961, by the assessee consequent upon the dismissal of their application made under section 256(1) of the Act by the Tribunal ("the ITAT") by order dated May 12, 1997, passed in R.A. No. 11/Ind/97 which in turn arises out of an appellate order dated December 27, 1996, passed in ITA No. 778/IND/92. It is the case of the applicant that the Tribunal ought not have dismissed their application made under section 256(1) of the Act fo .....

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..... was right in law in observing that the various adjustments as made by the Assessing Officer were not objected to by the assessee before the Commissioner of Income-tax (Appeals) when such ground was specifically raised in the grounds of appeal before the Commissioner of Income-tax (Appeals)?" Notice of this application was served on the respondents. They are served and duly represented. Heard Miss Vandana Kasrekar, learned counsel for the petitioner and Shri R.L. Jain, learned senior counsel with Miss Veena Mandlik, learned counsel for the respondent. Having heard learned counsel for the parties and having perused the record of the case we are inclined to allow the application in part and in consequence direct the Tribunal to refer the q .....

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..... manner in which the Tribunal has dealt with the issue so far as precedents of judicial propriety in following decisions of the High Court are concerned, the same should have been referred to this court for examination. It is, in our humble opinion, an issue which the High Court alone has to decide and not for the Tribunal to decide. We have our own reservations as to whether the Tribunal could make a comment on the decision of the High Court and having done so, whether judicial propriety permitted the Tribunal to ignore the decision and take its own view. All these issues need to be decided by the High Court in a reference under section 256(1) ibid. In view of the aforesaid discussion, the application is allowed. The Tribunal is directed .....

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