1979 (9) TMI 19

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..... 6(2) of the I.T. Act, 1961 (hereinafter referred to as " the Act "), requiring the Appellate Tribunal to state the case and to refer the question of law arising out of the order. The question of law posed reads: " Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the provisions of rule 19A(3) cannot be applied in computing the deduction allowab .....

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..... two-fold : First, the question as to the vires of the provision of r. 19A(3) of the I.T. Rules has been considered by the Calcutta High Court in Century Enka Ltd. [1977] 107 ITR 709 and by the Madras High Court in Madras Industrial Linings Ltd. [1977] 110 ITR 256, holding the said rule (rule 19A(3)) to be ultra vires and the determinations amounted to final decisions so far as the Appellate Tribun .....

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..... by the High Courts, until the validity of the sub-rule is finally determined, by this High Court in so far as the Tribunal is concerned. It will be open to the parties to give a true and correct interpretation of the decision of this court in Saharaj Tea Company [1978] 114 ITR 805, and its applicability, when the reference is heard by this court. However, we are of the tentative view that the st .....

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