Commssioner of Income Tax vs Elscope (P) Ltd.

D.A. Mehta, J.—The following question, at the instance of the CIT, has been referred by Tribunal, Ahmedabad Bench ''B'' u/s 256(1) of the IT Act, 1961 (the Act):

Whether, the Tribunal is right in law and on facts in deleting the additional tax of Rs. 3,92,510 levied u/s 104 of the Act?

The assessment year is 1979-1980. Consequent upon the addition made in the assessment for the assessment year in question, the AO made an order u/s 104 of the Act levying additional tax of Rs. 3,92,510. The CIT(A) deleted the addition. In Revenue''s second appeal the Tribunal, following its own order in quantum appeal, confirmed the order made by the CIT(A) holding that distributable income would be nil. The Tribunal has made the reference only because a reference had been made against the order made in quantum appeal.

Heard the learned advocates appearing for the applicant and the Revenue. They accepted the fact that this reference is consequential to the reference at the instance of the Revenue for asst. yr. 1979-80 being IT Ref. No. 235 of 1995.

Today, by a separate judgment reported as Elscope (P) Ltd. v. CIT (2008) 215 CTR(Guj) 16-Ed. the question referred to at the instance of the Revenue in quantum proceedings has been answered in favour of the assessee and the order made by the Tribunal in quantum appeal has been upheld.

In light of the aforesaid position the question referred, for the opinion of this Court, is answered in the affirmative i.e. in favour of the assessee and against the Revenue holding that the Tribunal was right in law in deleting the additional tax of Rs. 3,92,510 u/s 104 of the Act. The reference stands disposed of with no order as to costs.