Case: Commissioner Of Income-Tax, Delhi And Rajasthan Vs. The Mewar Textile Mills Ltd

1. This appeal, by certificate granted under S. 66A (2) of the Indian Income-tax Act, 1922, hereinafter referred to as the Act, read with S. 261 of the Indian Income-tax Act, 1961, is directed against the judgment of the Rajasthan High Court in a consolidated reference made to it by the Income-tax Appellate Tribunal, Delhi Branch, under S. 66 (1) of the Act. This appeal relates to the assessment year 1943-44 and the relevant question with which we are concerned is asthe profit on the amounts received by the assessees bankers in British India as price of goods sold by the assessee on railway receipts in the names of the consignees or as price of goods delivered ex-godown Bhilwara was liable to tax under the Indian Income-tax Act

Reasoning:
5. We may mention, however, that Mr. Desai contends before us that the facts are clear and he relies on six documents which are printed in the paper book namely:(1) The Contract form - Annexure Ex. T;(2) Copy of the postcard from Shiv Nath Radha Krishna Somani, Beawar, to M/s. Mewar Textile Mills, Bhilwara, dated March 7, 1942 - Annexure Ex. U;(3) Copy of the advice from Umedmal Abheymal Ajmer to Mewar Textile Mills, dated March 7, 1942 - Annexure Ex. V;(4) Copy of the despatch instructions from Shiv Nath Radha Krishna Beawar, to M/s. Mewar Textile Mills, Bhilwara, dated March 11, 1942, Annexure Ex. W;(5) Copy of letter to M/s. Shivnath Radha Krishna Somani, Beawar, dated March 12, 1942, Annexure Ex. X; and(6) Copy of the Journal Entry in the Books of the Mills of Rs. 9,000 Annexure Ex. Y.He invites us to treat these documents as a sample of the manner in which the goods were sent from Bhilwara, to the consignee in British India and the amount of Rupees 2,73,488 was received. But we notice that these very documents were filed as annexures to the assessees application under S. 66 (1) of the Act in respect of questions other than question No. 2, which was referred by the Tribunal at the instance of the appellant and, therefore, we feel a doubt whether these documents could safely be treated as relating to the item of Rs. 2,73,488.6. Before we conclude we must mention a matter of procedure. The Appellate Tribunal at the instance of the assessee attached a number of documents to the statement of the case, including the six documents mentioned above, but we find no mention of these documents either in the Appellate Order of the Appellate Tribunal or in the body of the statement of the case. We feel that it is not consistent with the advisory jurisdiction of a High Court under the Act that the Appellate Tribunal should attach to the statement of the case documents, other than the proceedings of the Income-tax authorities, which are not mentioned and discussed either in its own appellate order or in the statements of the case. Suppose a dispute arises as to the interpretation of a statement which is annexed in the manner above mentioned. If the High Court decides the dispute it would be deciding questions not decided by the Tribunal, and which the High Court would be incompetent to decide, under the Indian Income-tax Act.