Commissioner of Income Tax vs V.S. Bhagat

Arijit Pasayat, C.J.

Heard.

These three reference applications have been referred on the motion of the revenue u/s 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act) by the Tribunal, Delhi Bench A and following questions have been referred for opinion of this court pertaining to the assessment years 1970-71, 1971-72 and 1972-73 :

For the assessment year 1970-71

"Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that commission only at the rate of 1/2 per cent for assessment year 1970-71 on the company''s business receipts was assessable in the assessment of the assessed ?"

For the assessment year 1971-72

"Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that commission only at the rate of 1/4 per cent for assessment year 1971-72 on the company''s business receipts was assessable in the assessment of the assessed ?"

For the assessment year 1972-73

"Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that commission only at the rate of 1/ 16 per cent for assessment year 1972-73 on the company''s business receipts was assessable in the assessment of the assessed ?"

We need not go into the factual aspects in detail for the reason that the Tribunal, in support of its conclusion relied upon its decision in the case of one D.R. Bhagat in IT Appeal No. 6777 (Del) of 1974-75, dated 8-2-1980 and IT Appeal No. 4673 (Del) of 1974-75, dated 5-5-1977. We had occasion to deal with the case of D.R. Bhagat in IT Reference No. 88 of 1981, disposed of on 7-12-2000. Following the direction in the said case, we remit this matter also back to the Tribunal for fresh adjudication in accordance with law.

The reference applications are, accordingly, disposed of.