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TMI Blog1995 (1) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... 56 of the Income-tax Act, 1961. The Appellate Tribunal, vide its order dated August 1, 1990, had accepted the appeal of the assessee and set aside the order of assessment, holding that no case was made out for addition of a sum of Rs. 97,746 as had been done by the income-tax authorities. It is submitted that the questions of law, formulated in the present petition are such questions of law, which are required to be referred to this court for adjudication. In support of his submissions, learned counsel for the petitioner has relied upon the decision in CIT v. S. P. Jain [1973] 87 ITR 370 (SC). The jurisdiction of the High Court can be invoked under section 256 of the Income-tax Act for interpretation of any provision of the statute or for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive or retributive. The finding based upon inferences drawn from the facts of the case is a question of fact and cannot be stretched to the extent of arguing that such conclusions are questions of law requiring reference. The Supreme Court in CIT v. Daulat Ram Rawatmull [1973] 87 ITR 349, held that the finding of facts, which are perverse or not supported by evidence are admittedly open to challenge in a reference. It implies, therefore, that if a finding of fact is arrived at by wrongly applying the principles, the same can be questioned by the aggrieved party and a reference can be directed to be made in that event. On the basis of various judgments pronounced by the Supreme Court and other High Courts in the country, it can be said that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d "may" in sub-section (2) of section 256 of the Act is intended to give wide discretion to the High Court to require the High Court to make the reference only in such cases where all the conditions are strictly complied with. In a specific case where the amount involved is meagre but the question of law raised is substantial, the High Court may decline to require the Tribunal to make a reference on the ground that such reference was likely to amount to punishing the assessee. It is true, that the assessee under the Act is bound to pay the tax under law, but the provisions of the Act are not intended to be punitive, to be exercised at the whim or caprice of some authority under the Act. The object of the enactment can be achieved if a ratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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