In a reference under Section 256(2) regarding income tax assessment, the bench held that no detailed discussion was required due to the meagre tax impact of the enhancement. Consequently, the court declined to answer the reference question.
The reference question is not answered.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
HON’BLE SRI JUSTICE L. NARASIMHA REDDY AND HON’BLE SRI JUSTICE CHALLA KODANDA RAM
REFERRED CASE No. 4 OF 2002
09-07-2014
BETWEEN
The Commissioner of Income Tax, A.P. II, Hyderabad
And
M/s. United Construction Co., Hyderabad
…..Respondent
HON’BLE SRI JUSTICE L. NARASIMHA REDDY AND
HON’BLE SRI JUSTICE CHALLA KODANDA RAM
REFERRED CASE No. 4 OF 2002
ORDER: (per the Hon'ble Sri Justice L. Narasimha Reddy)
This reference is under Section 256 (2) of the Income Tax Act, 1961 (for short ‘the Act’) at the instance of the Revenue.
We have perused the record and heard Sri S.R. Ashok, learned Senior Counsel for the Revenue and Sri J.V. Prasad, learned counsel for the applicant.
The necessity for us to deal with matter in detail is obviated on account of the fact that the tax impact is meagre. To be precise, the assessee declared his income as Rs.1,85,000/-, whereas in exercise of the power under Section 263 of the Act, the
Commissioner has enhanced the same to Rs.2,40,000/-. The difference of income is Rs.55,000/-. The tax impact therein is too meagre.
Therefore, we decline to answer the question.
___________________________ L. NARASIMHA REDDY, J
____________________________ CHALLA KODANDA RAM, J
09-07-2014 ks
2 issues framed by the court
Whether the income tax reference under Section 256(2) should be answered given the meagre tax impact.
Whether the Reference Court is justified in declining to answer the question referred.
2 provisions across 1 enactments
The Commissioner of Income Tax, A.P. II, Hyderabad
M/s. United Construction Co., Hyderabad
L. NARASIMHA REDDY
CHALLA KODANDA RAM
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
