TMI Blog1981 (1) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... ? 2. If the answer to the first question is in the affirmative, the assessee having shown better yield of cotton from kapas than in the assessment year 1965-66 and the yield compared favourably with the accepted yield cotton at Barwaha in of a comparable case, the Tribunal was justified in determining the yield of cotton at 34.75% in the assessment year 1966-67 and sustaining an addition of Rs. 13,000 to the book profits on that basis ? " The material facts giving rise to this, reference briefly are as follows: The assessee, which is an HUF, carried on at the material time business in cotton at Bhikangaon and Barwaha. While framing the assessment for the year 1966-67, the ITO found that 6,929 quintals of kapas were ginned at the Barwaha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel for the assessee, contended that in a reference made under the directions of this court, the department could not contend that the question of law framed by this court did not arise. The contention of the learned counsel for the assessee cannot be upheld. In this connection, we may usefully refer to the following observations of the Supreme Court in CIT v. Smt. Anusuya Devi [1968] 68 ITR 750, 756: " We find it difficult to uphold the view of the Calcutta High Court that, if an order is passed by the High Court calling upon the Tribunal to state a case on a question which does not arise out of the order of the Tribunal, the High Court is bound to advise the Tribunal on that question even if the question does not arise out of the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Supreme Court make it very clear that the High Court's power to decline to answer a question which does not arise out of the order of the Tribunal or which is unnecessary or irrelevant is not taken away, even when by an erroneous order, the High Court has directed the Tribunal to state the case and refer a question which is shown not to arise out of the order of the Tribunal.. It is thus evident that, even at this stage, this court has power to decide whether the question referred by the Tribunal in pursuance of the directions of this court does arise out of the order passed by the Tribunal. Now, in the instant case, the question as to whether the ITO was justified in proceeding to make a best judgment assessment without rejecting the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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