| Case ID |
37da3d75-d696-4aac-b329-71a4555338aa |
| Body |
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| Case Number |
D.B. IT REFERENCE No. 33 OF 1998 |
| Decision Date |
Aug 01, 2003 |
| Hearing Date |
|
| Decision |
The Rajasthan High Court held that it is not bound to answer questions of law referred by the Tribunal when such questions are purely academic and do not resolve any real controversy. In this case, the Tribunal's refusal to refer the third question indicated that the first two questions were of academic nature and would not affect the outcome of the case. The court emphasized the importance of avoiding unnecessary litigation and conserving judicial resources. The reference made by the Tribunal was ultimately returned unanswered, highlighting that academic questions should not consume the court's time, which could be better utilized in resolving substantive legal issues. |
| Summary |
In the case of Commissioner of Income Tax v. G.B.H. Exporters, the Rajasthan High Court addressed significant issues related to the Income-tax Act, 1961. The case arose from a search operation conducted at the business premises of the assessee, leading to penalty proceedings under section 271(1)(c) for alleged concealment of income. The Tribunal had concluded that the statement made by a partner in the firm during a subsequent search was valid and entitled the assessee to immunity under Explanation 5 of section 271(1)(c). However, the High Court ruled that the questions referred by the Tribunal were academic in nature, stating that their answers would not impact the final outcome of the case. This decision underscores the court's role in filtering out cases that do not present real legal controversies, emphasizing the need for judicial efficiency. The ruling is significant for tax law practitioners and highlights the importance of understanding the implications of academic questions in legal proceedings. |
| Court |
Rajasthan High Court
|
| Entities Involved |
|
| Judges |
S.K. Keshote,
K.S. Rathore
|
| Lawyers |
J.K. Singhi,
N.M. Ranka,
N.K. Ranka
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
G.B.H. Exporters
|
| Citations |
2004 SLD 2839,
(2004) 271 ITR 545
|
| Other Citations |
CIT v. Smt. Anusuya Devi [1968] 68 ITR 750 (SC),
CIT v. J.K.K. Angappa Chettiar [1983] 144 ITR 775
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
260,
271(1)(c),
132(4),
Explanation 5
|