COMMISSIONER OF INCOME TAX Vs. SAHARIA KRISHIVAN PRATISTHAN LIMITED

JUDGEMENT

(1.) THIS is an application under S. 256(2) of the IT Act, 1961 (hereinafter referred to as "the Act"), requiring the Tribunal to state the case and to refer the question of law arising out of the order.

(2.) THE question of law posed reads :

(3.) IT is indubitable and in fact admitted in the impugned order that the question posed was a question of law and that it arose out of the order of the Tribunal. The main reasons for not making the reference are two -fold : First, the question as to the vires of the provision of r. 19A(3) of the IT Rules has been considered by the Calcutta High Court in Century Enka Ltd. (1977) 107 ITR 709 and by the Madras High Court in Madras Industrial Linings Ltd. 1978 CTR (Mad) 45 : (1977) 110 ITR 256, holding the said rule (r. 19A(3)) to be ultra vires and the determinations amounted to final decisions so far as the Tribunal was concerned as it held that the decisions rendered by the two High Courts "is the law of the land". The second ground which found favour in rejecting the application for reference was that it had been determined by this High Court in Saharaj Tea Company 1976 CTR (Guj) 411 : (1978) 114 ITR 805 (Guj), that under no circumstances an order of remand could be made the subject -matter of a reference.