9911796707
TMI Blog1999 (3) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... essee, against the orders of the AO, the CIT(A), Rajkot, after consideration of the relevant materials and the facts and circumstances, reversed the view of the AO and held that KGD could not be characterised as the real owner of the five educational institutions and that the said firms are genuine and, therefore, registration cannot be refused. The appeals filed by the assessee, thus, came to be allowed for the relevant assessment years. Upon further appeals by the Revenue before the Tribunals, the orders of the CIT(A) came to be affirmed. Thus, the Tribunal confirmed the views of the first appellate authority. As a result of which, at the instance of the Revenue, reference applications under s. 256(1) of the IT Act came to be filed before the Tribunal which, came to be rejected by the common order dt. 3rd Aug., 1998. That is how this group of applications came up before us praying for exercise of power under s. 256(2) of the IT Act, calling for reference. 3. We have heard the learned counsel appearing for the parties and have, dispassionately, examined the facts and circumstances emerging from the record of the case and also the relevant proposition of law. Learned counsel appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal more so in a case where two appellate authorities have concurrently recorded findings of facts. Since, in our opinion, no questions of law are involved, we do not find any justification or merit in this group of 24 applications praying for exercise of power under s. 256(2) of the IT Act. However, since we are addressed at length and host of authorities are referred, we would not like to make an interception en route without referring following aspects which have remained unimpeachable : (1) All the partnership firms have common feature in the title which appeared to be educational institutions, like, Gnan Ganga Classes, a firm which was commenced w.e.f. 1st April, 1976, Gnan Ganga Science Institute, commenced w.e.f. 1st April, 1982, Gnan Ganga Commerce Classes, commenced w.e.f. 1st April, 1984, and Gnan Ganga Coaching Classes, commenced from 1st April, 1984 and Gnan Ganga Arts Institute commenced from 1st April, 1986. (2) The Revenue authority upon search found that the bank account in which cash was being deposited was in the joint names of KGD and his brother. (3) The first appellate authority upon assessment of all facts and circumstances reached to the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance in isolation from the entire scenario emerging from the record of the case. It is the cumulative effect and the result of the fact situation from the record on merits and it has been considered in greater details by the first appellate authority and is, in our opinion, rightly also, confirmed by the second appellate authority, Since the finding of fact recorded by both the authorities finally culminating into the impugned order of Tribunal does not raise any question of law, the applications under s. 256(2) of the IT Act need to be rejected. The finding of facts recorded and challenged in a reference jurisdiction can be interfered with, as a question of law, only upon satisfaction of one or more following aspects, that : (1) it is perverse ; (2) it is based on irrelevant materials ; (3) it is unreasonable ; (4) it is based on no evidence ; (5) it is based on material not on record ; (6) it suffers from the vice of non-application of mind to the vital and important materials; (7) the decision or the order is such that no reasonable man can conclude upon the appraisal of the facts on record, (8) there was misapplication of the provisions of law ; (9) the auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perspective in viewing a thing does not transform a question of fact into a question of law. 9. It is interesting to note that the Hon'ble apex Court in CIT vs. Karam Chand Thapar Bros. (P) Ltd. (1989) 76 CTR (SC) 36 : AIR 1989 SC 1045 : TC 8R. 717, has, clearly, propounded that it is not necessary for the Tribunal to state in its judgment specifically, or in express words, that it has taken into account the cumulative effect of the circumstances or has considered the totality of facts. If the judgment of the Tribunal shows that it has, in fact, done so, there is no reason to interfere with the decision of the Tribunal. The Tribunal's decision on facts cannot be questioned unless it is based on irrelevant evidence or is perverse and ordinarily, the finding of fact is final and not open to further reference to the High Court. Therefore, the High Court need not undertake minute scrutiny to find out whether all facts and materials have been taken into account by the Tribunal. The Tribunal is the final fact-finding body. The decision of the Tribunal has not to be scrutinised sentence by sentence to find out whether all facts have been set out in detail by the Tribunal or whether so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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