TMI Blog2020 (11) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... firm M/s. Om Prakash Co. for it accrued on 10.08.1975, in the assessment year 1976-77, and the amendment which came into effect only on 1.10.1975 was to apply only prospectively and not retrospectively. - TAX CASES No.28 of 1986 - - - Dated:- 6-11-2020 - HONOURABLE THE CHIEF JUSTICE AND HONOURABLE MR. JUSTICE S. KUMAR Appearance : For the Petitioner/s : Mr. D. V. Pathy, Advocate For the Respondent/s : Mr. Rishi Raj Sinha, Advocate Ms. Shilpi Keshri, Advocate ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) The Income Tax Appellate Tribunal, Patna Bench, Patna has made the instant Reference under Section 256 (1) of the Income Tax Act,1961 on the following substantial questions of law:- 1. Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the High Court given in a reference under Section 66 of the Act, are not constituted courts of appeal against the order of the Tribunal. These courts only exercise advisory jurisdiction in such references. [ Rameshwar Prasad Bagla v. CIT, (1973) 3 SCC 575] In Premier Breweries Ltd. v. CIT, (2015) 11 SCC 695 : 2015 SCC OnLine SC 196 at page 698 , the Court observed: 9. The second issue raised is the jurisdiction of the High Court to set aside the order of the Tribunal in the exercise of its reference jurisdiction. The point is no longer res integra having been settled in C.P. Sarathy Mudaliar v. CIT [C.P. Sarathy Mudaliar v. CIT, (1966) 62 ITR 576 (SC)] wherein this Court has taken the view that setting aside the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fect the share of income appertaining to the minor when this became due on the close of the accounting year followed by the firm on 10.08.75. He, therefore, resisted the inclusion but the ITO over ruled him on the ground that any provision which was effective on the first day of the assessment year, that is, of 1st of April was to apply notwithstanding the date of accrual within the accounting year. The disputed amendment was in effect from 1st of April, 1976, corresponding to the assessment year 1976-77 share of the minor was includible in the income of the assessee. His order forms annexure A and a part of the statement of the case. 4. His order had been confirmed by the A.A.C. which has been annexed as annexure B and constitutes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 64(1) (iii) in the Income Tax Act with effect from 1.4.1976. The tax liability under the said provision could therefore be charged on the assessee, in the assessment which was to be made for that accounting year i.e. 1976-77, which would be done in the assessment year 1977-78. The Amending Act introducing a new tax liability which came into force with effect from 1.4.1976 could not be given a retrospectivity and be made applicable to the previous accounting year i.e. 1975-76 corresponding to the assessment year i.e. 1976-77. Thus, in view of the observations made by a three-judge Bench of this Court in its judgment dated 01.08.2019, relevant portion whereof stands extracted hereinabove, the Appellate Tribunal was not correct, in law, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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