COMMISSIONER OF INCOME-TAX VS RAJASTHAN STATE ELECTRICITY BOARD
2001 P T D 2708
[248 I T R 185]
[Supreme Court of India]
Present: S. Rajendra Babu and Shivaraj V. Patil, JJ
COMMISSIONER OF INCOME‑TAX
versus
RAJASTHAN STATE ELECTRICITY BOARD
Civil Appeal No.4856 of 2000, decided on 01/09/2000.
(Appeal by special leave from the judgment and order, dated September 16, 1996, of the Rajasthan High Court in D.B.I.T.R. No.4 of 1996).
Income‑tax‑‑‑
‑‑‑‑Reference‑‑‑Deduction of tax at source‑‑‑Deposit of tax deducted at source with interest‑‑‑Tribunal whether justified in cancelling direction by ITO for such deposit‑‑‑Question of law‑‑‑Indian Income Tax Act, 1961, S.256.
Held, that the question whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in cancelling the direction issued by the Income‑tax Officer (TDS) for deposit of amount of TDS at Rs.37,36,775 with interest thereon at Rs.1,48,465, thus, totalling to Rs.38,85,240 was a question of law.
S.K. Dwivedi, Ms. Laxmi Iyengar and Ms. Sushma Suri, Advocates for Appellant.
B. Sen, Senior Advocate (Sushil Kumar Jain, Advocate with him) for Respondent.
ORDER
Leave granted.
A question of law was sought to be referred to the High Court as provided under section 256 of the Income Tax Act, 1961, on an application thereto made before the Tribunal. The Tribunal declined to refer the said question on the ground that in the facts and circumstances, the question of law would not arise at all. An application has made before the High Court for calling for a reference under section 256(2) of the Income Tax Act. The same having been rejected, this appeal is filed.
Having looked into the facts and circumstances of the case we think that a question of law does arise. The Tribunal is directed to make a statement and refer the following question of law to the High Court for consideration:
"Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in cancelling the direction issued by the Income‑tax Officer (TDS) for deposit of amount of TDS at Rs.37,36,775 with interest thereon at Rs.1,48,465, thus, totalling to Rs.38,85,240?"
The appeal is allowed accordingly.
M.B.A./946/FCAppeal allowed.