Commissioner of Income Tax vs Zimindara Tubewell Store

Following question of law has been referred for opinion of this Court by the income tax Appellate Tribunal, Chandigarh, arising out of its order dated 25-08-1990 in respect of assessment year 1982-83 and 1983-84:- Whether on the facts and in the circumstances of the case, the ITAT was right in law in directing the ITO to recalculate the penalty in view of their observations made in the case of Zamidari Agencies for the assessment year 1983-84 (I.T. Appeal No.962/Chandi/88) when the facts of the case are quite different from each other?

We find that the amount involved is insignificant that is Rs. 2,582 for the assessment year 1982-83 and Rs. 3,937 for the assessment year 1983-84. It was held by the Delhi High Court in Commissioner of Income Tax Vs. Blaze Advertising (Delhi) (P) Ltd., that where the amount involved was insignificant, the Court may decline to answer the question, though it may not be a universal principle. In Commissioner of Income Tax (CNTL), Ludhiana Vs. Hero Cycles Pvt. Ltd., Ludhiana, Hon''ble Supreme Court observed:-

The amount involved is Rs. 10,000 only and the case being 23 years old we do not feel inclined to go into the question raised. However, we make it clear that we are not expressing any opinion on the correctness of the decision referred by the Tribunal. The appeal is dismissed. There will be no order as to costs.

In the present case, having regard to the insignificant amount involved and the view of the Tribunal being a possible view, we do not consider it appropriate to go into the merits of the case. The reference is thus returned unanswered.