Jay Engineering Works Limited vs Commissioner Of Income-Tax
1987 Latest Caselaw 40 Del

JUDGMENT

1. These are cross-applications by the assessed and the Commissioner of Income-tax. In the assessed's application, the first question seeks to challenge the applicability of section 147(a) of the Income-tax Act, 1961. This, in our opinion, is a finding of fact, as the Tribunal has found that the assessed has not disclosed fully and truly all the facts necessary for the assessment for the assessment year 1971-72 at the time of the original assessment. The second question raised by the assessed involves two points : (1) whether the sum of Rs. 1,00,000 was deductible in 1971-72; and (2) whether the Tribunal was correct in directing the allowance of this amount in 1972-73. So far the first aspect is concerned, the answer is obvious because the Tribunal has found that the cheque was issued after the end of the accounting year relevant to the assessment year 1971-72. So far as the second aspect is concerned, the Department is also aggrieved by the directions given by the Tribunal to the Department to allow the deduction in the assessment year 1972-73. The Department points out that the Tribunal was seized only of the appeal for the year 1971-72 and had no jurisdiction to give any direction in respect of the assessment year 1972-73 which had become final by that time. This aspect, in our opinion, raises a question of law. We, therefore, direct the Tribunal to state a case and refer the following question of law for the decision of this court :

"Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal acted within its jurisdiction in directing the Income-tax Officer to allow the assessed a deduction of Rs. 1,00,000 under section 80G for the assessment year 1972-73, when it was dealing with the assessment for the assessment year 1971-72 ?"

2. The applications are disposed of. No costs.