Commissioner of Income Tax vs Keshri Metal Pvt. Ltd.

A.K. Mathur, C.J.—This is a reference u/s 256(1) of the Income Tax Act, 1961, at the instance of the Revenue and the following question of law has been referred by the Tribunal for answer by this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the findings of the learned Commissioner of Income Tax (Appeals) who cancelled the order of the Assessing Officer passed on June 18, 1991, u/s 154 of the Income Tax Act, 1961 ?"

We are of the opinion that the question referred by the Tribunal does not involve any question of law and it is purely a question of fact. The Assessing Officer decided the issue on the basis of total income filed by the assessee with reference to Section 115J of the Act. Thereafter the Assessing Officer found some mistake and hence rectified the same u/s 154 of the Act.

The matter was taken up before the Commissioner of Income Tax (Appeals) by the assessee and the Commissioner of Income Tax (Appeals) after perusing the record came to the conclusion that there was no error apparent so as to call for rectification and accordingly set aside the order of the Assessing Officer passed u/s 154 of the Act. Against that order, the Revenue went in appeal before the Tribunal and the Tribunal, affirmed the order passed by the Commissioner of Income Tax (Appeals). Hence, the aforesaid question has been referred by the Tribunal at the instance of the Revenue for answer by this court.

We are satisfied that the order passed by the Commissioner of Income Tax (Appeals) as also the order passed by the Tribunal are justified as the Commissioner of Income Tax (Appeals) has specifically found that there was no occasion for rectification which view has been affirmed by the Tribunal. These are thus all questions of fact only and no question of law arises. In our opinion, the view taken by the Tribunal is justified and hence we answer this question in favour of the assessee and against the Revenue.