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Cit, Gujarat Iii Vs. Cadila Chemicals - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtSupreme Court of India
Decided On
Case NumberCivil Appeal Nos. 1650-51 and 2385-86 of 1994 and 4573 of 1998
Judge
Reported inAIR2000SC3615; [2000]244ITR28(SC); (1999)9SCC35
ActsIncome-tax Act, 1961 - Sections 40A(5) and 256(2)
AppellantCit, Gujarat Iii
RespondentCadila Chemicals
Cases ReferredGujarat Steel Tubes v. Commr. of Income
Excerpt:
- section 11ab: [s.h.kapadia & aftab alam,jj] interest on duty short levied/paid applicability - assessee making retrospective revision of price of goods held, different duty paid by assessee at time of issuance of supplementary invoice to customers cannot be said to be not a case of short levy of duty. at the time of sale, goods carried a higher value and those were cleared on short payment of duty. it is clearly a case of short payment of duty though indeed completely unintended. assessee is liable to pay interest under section 11ab. - 4. we make it clear that we do not express any view on the questions but, clearly, the questions are questions of law and their consideration by the high court is requisite......avail ability of the deduction in so far as the employer was concerned. he also submitted that the gujarat high court, in a matter relating to the employer, gujarat steel tubes v. commr. of income-tax : [1994]210itr358(guj) , had taken a view which favoured the revenue. there was, therefore, a question of law to be considered and the high court ought to have called upon the tribunal to refer the questions to it for determination. learned counsel for the assessee, fairly, did not dispute that, in any event, questions of law arose which required determination by the high court.4. we make it clear that we do not express any view on the questions but, clearly, the questions are questions of law and their consideration by the high court is requisite.5. the appeals are allowed. the orders.....
Judgment:
ORDER

1. The questions raised in these three appeals, relating to three different sets of assessment years, are common. They read thus:

(1) Whether the Tribunal is right in law and on facts in deleting the addition under Section 40A(5) of the Income-tax Act, 1961 in respect of premium paid for the purchase of deferred annuity policies in respect of two Managing Directors?

(ii) Whether the appellate Tribunal is right in distinguishing the decision of the Gujarat Steel Tube (P) Ltd. reported in (1994) 115 CTR 82?

2. It is difficult to understand why the Tribunal declined to refer these questions to the High Court. The High Court took the view that they need not be referred because the issue was settled by the decision of the Supreme Court in Commr. of Income-tax v. L.W. Russel : [1964]53ITR91(SC) .

3. Learned Counsel for the appellant-Revenue submitted that the decision in Russel's case aforementioned concluded the matter in so far as it related to the employee while the present proceedings related to the avail ability of the deduction in so far as the employer was concerned. He also submitted that the Gujarat High Court, in a matter relating to the employer, Gujarat Steel Tubes v. Commr. of Income-tax : [1994]210ITR358(Guj) , had taken a view which favoured the Revenue. There was, therefore, a question of law to be considered and the High Court ought to have called upon the Tribunal to refer the questions to it for determination. Learned Counsel for the assessee, fairly, did not dispute that, in any event, questions of law arose which required determination by the High Court.

4. We make it clear that we do not express any view on the questions but, clearly, the questions are questions of law and their consideration by the High Court is requisite.

5. The appeals are allowed. The orders under appeal are set aside. The applications made by the Revenue under Section 256(2) of the Income-tax Act are allowed. The Tribunal is directed to refer the questions to the High Court for consideration, having drawn up the requisite statement of cases. No order as to costs.


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