| Case ID |
ebdb8f70-bf97-4f85-a475-aa1c9abd3d7f |
| Body |
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| Case Number |
D-2741 of 2016 |
| Decision Date |
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| Hearing Date |
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| Decision |
The Karnataka High Court held that no application for reference under section 256(2) lies concerning an order made by the Appellate Tribunal rejecting an application made under section 254(2). The court clarified that an application under section 256 can only be filed concerning an order made under section 254(1). If the Tribunal rejects a miscellaneous application for rectification of an order made under section 254(1), then the order remains undisturbed, and no question of law arises from such rejection. Therefore, the applications presented by Jai Bharat Enterprises were dismissed as not maintainable, reinforcing the procedural limitations regarding appeals and references in income tax cases. |
| Summary |
In the case of Jai Bharat Enterprises v. Commissioner of Income Tax, the Karnataka High Court addressed the procedural aspects of filing reference applications under the Income-tax Act, 1961. The core issue was whether an application for reference under section 256(2) could be made regarding a Tribunal's order that rejected a miscellaneous application under section 254(2). The court concluded that reference applications are limited to orders made under section 254(1), thus clarifying the scope of appeals in tax law. This case highlights the importance of precise legal grounds in tax disputes and the necessity for parties to adhere strictly to the provisions of the Income-tax Act when seeking judicial review of Tribunal decisions. The ruling is significant for tax practitioners and businesses navigating complex tax regulations, emphasizing the need for clarity in legal arguments and compliance with procedural norms. |
| Court |
Karnataka High Court
|
| Entities Involved |
Not available
|
| Judges |
M. Rama Jois,
S. Rajendra Babu
|
| Lawyers |
G. Sarangan,
K. Srinivasan,
H. Raghavendra Rao
|
| Petitioners |
Jai Bharat Enterprises
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1988 SLD 1777,
(1988) 173 ITR 132
|
| Other Citations |
Popular Engg. Co. Ltd. v. CIT [1983] 140 ITR 398 (MP)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
256,
254(2),
35B(1)(b)
|