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Judgment
This is an application u/s 256(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act) whereby the Commissioner, Udaipur, has sought for a direction to the Tribunal to refer the following question of law to this court for determination :
"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no interest can be charged u/s 217(1) or section 217(1A) as the assessee has filed the estimates and has paid tax accordingly, by ignoring the fact that the assessee had filed the estimate u/s 209A(1) whereas the assessing officer charged interest u/s 217(1A) for non-filing of estimates u/s 209A(4) of the Income Tax Act ?"
The Commissioner moved an application u/s 256(1) before the Tribunal for referring the above question of law to this court. The Tribunal rejected the above application vide its order dated 4-5-1998 holding that answer to the question is self-evident and, therefore, it need not be referred.
Having heard the learned counsel for the revenue, we are of the opinion that the question raised is a question of law and as it involves interpretation of statutory provision and effect of omission of section 209A with effect from 1-4-1988 on the obligation of the assessee to furnish estimate of his income u/s 209A during the financial year relevant to the assessment year 1988-89, which requires consideration.
The Tribunal has erred in rejecting the application u/s 256(1) on the ground that answer is self-evident.
In this view of the matter, we allow this reference application and direct the Tribunal, Jaipur Bench, Jaipur, to refer the following question for determination to this court:
"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no interest can be charged u/s 217(1) or section 217(1A) when the assessee has filed the estimate of his income u/s 209A(1) and paid tax accordingly, and that he was not required to file estimate of his income u/s 209A(4) of the Income Tax Act, thereafter?"