Commissioner of Income Tax vs Ganesh Sizing Factory

V.K. Singhal, J.—This application u/s 256(2) of the Income Tax Act, 1961, has been moved against the order dated November 14, 1983, which has been rectified on March 22, 1984, on a miscellaneous application having been moved by the assessee in respect of the assessment year 1978-79.

We need not go to the various points which have been raised. The question of law as stated in the application u/s 256(1) was as under :

"(i) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in not holding, that there was no mistake in its order dated November 14, 1983, in Income Tax Appeal No. 592/(JP) of 1984 apparent from the record to be rectified u/s 254(2) of the Income Tax Act, 1961 ?

(ii) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified while passing order u/s 254(2) of the Income Tax Act, 1961, in restoring the issue regarding grant of registration to the firm for the assessment year 1978-79 to the file of the Income Tax Officer for redetermining the issue after considering the quantum of profits and distribution thereof amongst the partners while it had never been the case of the assessee that it had ever distributed profits on suppressed sales of Rs. 1,78,687 and bogus purchases of Rs. 49,570 as confirmed by the Tribunal in their quantum appeal ?

(iii) Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in not affirming the finding given in its original order dated November 14, 1983, in R. T. A. No. 592/ (JP) of 1982 that the assessee-firm failed to distribute profits on suppressed sales of Rs. 1,78,687 and bogus purchases of Rs. 49,570 and, therefore, is not entitled to the registration under the Income Tax Act ?"

The question as to whether the Income Tax Appellate Tribunal has the jurisdiction to rectify the order u/s 254(2) of the Income Tax Act is a question of law and requires an interpretation with regard to the jurisdiction of the Tribunal. We are satisfied that the above question of law arises out of the order of the Tribunal and, therefore, direct the Income Tax Appellate Tribunal to refer the above question of law along with the statement of case.

The application is allowed.