Income-tax---

----Reference---Statement of case---Duty of Tribunal---Tribunal referring to four documents in its appellate order and in the statement of case-- Documents not annexed to the statement of case---Direction given for supplementary statement of case---Indian Income-tax Act, 1961, Ss.256 & 258.

It is the duty of the Tribunal to draw up a proper statement of the case and to enclose the vital or important documents, which have been referred to in the appellate order or in the statement of the case.

Held, that, in its appellate order and in the statement of the case, the Tribunal had referred to the following four documents: (1) Lease deed entered into between the assessee-company and the owners, dated April 3, 1970, (2) agreement entered into between the assessee-company and the owners, dated August 11, 1972; (3) resolution passed by the assessee-company on December 21,1973; and (4) agreement entered into between the assessee and the owners dated December 22,1973. The questions whether the Tribunal was right in law in invoking the provisions of section 40-A(2)(a) of the Income-tax Ad, 1961, to disallow part of the rent payments made for the period after August 11, 1972, at the rate of Rs.4,000 per month and whether the Tribunal was right in allowing rent for the entire period August 11, 1972 to March 31, 1974, against the income chargeable for the previous year which ended on March31, 1974, could not be answered satisfactorily in the absence of the above four documents.

Tribunal was directed to forward a supplementary statement of case incorporating in full the said four documents.

Tranvancore Tea Estate Co. Ltd. v. CIT (1992) 194 ITR 404 (Ker.) ref.

P. Balachandran for the Assessee.

P.K.R. Menon and N.R.K. Nair for the Commissioner.

JUDGMENT

K. S. PARIPOORNAN, J: -- At the instance of an assessee to income-tax and also the Revenue, the Income-tax Appellate Tribunal, Cochin Bench, has referred the following three questions of law, for the opinion of this Court:--

"(1) Whether, on the facts and in the circumstances of the case and in the light of the finding that the assessee had the liability to pay rent from August 11, 1972, and the rent of Rs.4,000 is quite fair, the Tribunal was right in law in invoking the provisions of section 40-A(2)(a) of the Income-tax Act, 1961, to disallow part, of the rent payments made for the period after August 11,1972, at the rate of Rs.4,000 per month?

(2) Whether the Tribunal erred in law and acted beyond the jurisdiction vested in it under section 254(1) of the Income-tax Act, 1961, in deciding and declaring the allowable deduction on account of rent for the period even beyond March 31, 1974?

(3) Whether, on the facts and in the circumstances of the case and under section 30 of the Income-tax Act, 1961, the Tribunal is right in allowing rent for the entire period August 111972 to March, 31, 1974, against the income chargeable for the previous year which ended on March 31,1974?"

The statement of the case is dated August 8,1989.

We heard counsel.

In the appellate order, dated July 21, 1980, the Income-tax Appellate Tribunal has made reference to the following documents:--

(1) Lease deed entered into between the assessee-company and the owners, dated April 3,1970;

(2) Agreement entered into between the assessee-company and the owners, dated August 11, 1972;

(3) Resolution passed by the assessee-company on December 21, 1973; and

(4) Agreement entered into between the assessee and the owners, dated December 22,1973.

A reference to the above documents is necessary to satisfactorily dispose of the matter. Apart from the appellate order, even in the statement of the case, reference is made to the above four documents. But the Appellate Tribunal has not made the above documents annexure. We have got some portions of one of the agreements and portions of the resolution, in the appellate order and also in the statement of the case. But, we are of the view that, in order to properly and satisfactorily answer the questions referred to this Court, the above four documents should be made available to us in full. We are rather surprised that the Appellate Tribunal has not chosen to enclose those documents as annexure alongwith the statement of the case. Since we are not in a position to give a satisfactory decision in the absence of the above four documents, the only alternative left to us is to direct the Appellate Tribunal to forward a supplementary statement of the case to this Court. We, therefore, in exercise of the powers vested in this Court under section 258 of the Income-tax Act, direct the Income-tax Appellate Tribunal, Cochin Bench, to forward a supplementary statement of the case to this Court incorporating in full the four documents which we have stated and specifically enumerated hereinabove. In this connection, we would draw the attention of the Tribunal to a Bench decision of this Court in Tranvancore Tea Estate Co. Ltd. v. CTT (1992) 194 ITR 404), wherein this Court had occasion to remind the Tribunal of its duty to draw up a proper statement of the case and to enclose the vital or important documents which have been referred to in the appellate order or in the statement of the case.

A copy of this order, under the seal of this Court and the signature of the Registrar, shall be forwarded to the Income-tax Appellate Tribunal, Cochin Bench, forthwith.

M.B.A./27/T.F.Order accordingly.