Upper India Steel Manufacturing And Engineering Company Private Limited Vs. Commissioner Of Income Tax, Lucknow On 04 December, 1978

Q: Q. What are the equivalent citations for Upper India Steel Manufacturing and Engineering Company Private Limited vs Commissioner of Income Tax, Lucknow ?

The equivalence citation are(1980) 3 SCC 54 ; [1979] 1 TAXMAN 365 (SC) ; (1979) 10 CTR SC 101 ; AIR 1979 SC 1724 ; [1979] 117 ITR 569 (SC) ; LQ/SC/1978/376 ;

Q: Q. What was the bench assigned for the case Upper India Steel Manufacturing and Engineering Company Private Limited vs Commissioner of Income Tax, Lucknow?

HONBLE JUSTICE P. N. BHAGWATI, HONBLE JUSTICE V. D. TULZAPURKAR, HONBLE JUSTICE R. S. PATHAK

Open iDraf

Upper India Steel Manufacturing And Engineering Company Private Limited v. Commissioner Of Income Tax, Lucknow

Upper India Steel Manufacturing And Engineering Company Private Limited
v.
Commissioner Of Income Tax, Lucknow

(Supreme Court Of India)

No | 04-12-1978

1. There are two questions in respect of which a reference has been directed by the High Court on the application of the revenue under s. 256(2) of the I.T. Act, 1961. So far as the first question is concerned, it is undoubtedly a question of law and could properly form the subject-matter of a reference but the second question as framed is clearly a question of fact and we fail to see how it could be directed to be referred by the High Court. The question whether a particular expenditure on rent is excessive and unreasonable or not is essentially a question of fact and does not involve any issue of law and hence we are of the view that the second question ought not to have been directed to be referred by the High Court. But if the second question could not form the subject-matter of a reference, then obviously the first question becomes academic, because s. 40A(2)(a) cannot have any application, unless it is first held that the expenditure on rent was excessive or unreasonable.

2. We, accordingly, allow the appeal and set aside the order of reference made by the High Court. There will be no order as to costs of the appeal. Appeal allowed.

Advocates List

For

Bench List

HON'BLE JUSTICE P. N. BHAGWATI

HON'BLE JUSTICE V. D. TULZAPURKAR

HON'BLE JUSTICE R. S. PATHAK

Eq Citation

(1980) 3 SCC 54

[1979] 1 TAXMAN 365 (SC)

(1979) 10 CTR SC 101

AIR 1979 SC 1724

[1979] 117 ITR 569 (SC)

LQ/SC/1978/376

HeadNote

A. Income Tax Act, 1961 — Ss. 256 and 256(2) — Reference — Questions referred to High Court — One question of law and other of fact — Proper subject matter of reference — Held, second question is essentially a question of fact and does not involve any issue of law — Hence, second question ought not to have been directed to be referred by High Court — First question becomes academic because S. 40A(2)(a) cannot have any application unless it is first held that expenditure on rent was excessive or unreasonable — Constitution of India, Art. 139