Prem Sahily (Specific) Trust vs Income-Tax Appellate Tribunal
1992 Latest Caselaw 451 Del

JUDGMENT

1. In view of the Full Bench decision of this court in Smart P. Ltd. v. Income tax Appellate Tribunal [1990] 182 ITR 384 (Delhi), learned counsel for the parties agree that the order of the Income-tax Appellate Tribunal, Delhi Bench, New Delhi, dated November 15, 1991, which has been reproduced in letter dated November 19, 1991, copy which is annexure-E to the writ petition, is to be quashed for the simple reason that the application of the petitioner under section 254(2) of the Income-tax Act, 1961, was decided by the aforesaid in Chambers without affording an opportunity of hearing to the petitioner.

2. Accordingly, we allow the writ petition and quash the order dated November 15, 1991, of the Income-tax Appellate Tribunal, Delhi Bench, New Delhi, and remit the matter back to the Tribunal to decide the petitioner's application under section 254(2) of the Income-tax Act, 1961, after affording a hearing to the petitioner.

3. Before we part with the case we may point out that a preliminary objection bad been raised by learned counsel for the respondent and it was urged that the Income-tax Officer and the Appellate Assistant Commissioner of Agra had decided the matter, and the writ petition should have been filed in the High Court at Allahabad and this court has got no jurisdiction. In support of his contention he has relied on Seth Banarsi Dass Gupta v. CIT [1978] 113 ITR 817 (Delhi) and Birla and Cotton Spinning and Weaving Mills Ltd. v. CIT [1980] 123 ITR 354 (Delhi). In these cases, the Income-tax Appellate Tribunal decided the matter and when the question of reference under section 256(1) of the Income-tax Officer or the Appellate Assistant Commissioner of Income-tax was situate and not in the Delhi High Court. The present case is distinguishable because the question of reference would arise only under the Income-tax Appellate Tribunal which decided the application of the petitioner under section 254(2) of the Income-tax Act and passed the impugned order is within the jurisdiction of this court. Although the High Court at Allahabad may also have the jurisdiction to entertain the writ petition, it cannot be taken that this court will have no jurisdiction. Accordingly, we reject the preliminary objection.