Commissioner of Income Tax v. Engineers India Ltd. (SC) BS718561
SUPREME COURT OF INDIA

Before:- H.L. Dattu and S.A. Bobde, JJ.

Special Leave to Appeal (Civil) No(s). 5731-5732 of 2013 in ITA No.297 of 2012, ITA No.300 of 2012. D/d. 31.3.2014.

Commissioner of Income Tax - Petitioner

Versus

Engineers India Ltd. - Respondent

For the Petitioner :- R.P. Bhatt, Sr. Advocate, Anita Sahani, Shalini Kumar for Anil Katiyar, Advocates.

For the Respondent :- Sonu Bhatnagar, Tarun Jain, Somnath Shukla, Kshitiz Karjee for Praveen Kumar, Advocates.

Constitution of India, 1950 Article 136 Special Leave Petition - Income Tax Act, 1961 Section 260A(4) Appeal to High Court - Grievance of Revenue that by necessary implication, other questions raised in memo of appeal before High Court is rejected - High Court power to frame substantial questions of law at time of hearing of appeal other than questions on which appeal admitted remains under Section 260A - Power is subject to two conditions, (i) Court must satisfied that appeal involves such questions and (ii) Court to record reasons therefore - Held, No justifiable reasons to entertain appeal - Hence Special Leave Petition dismissed.

[Paras 4 and 5]

ORDER

Heard Mr. R.P. Bhatt, learned senior counsel for the petitioner.

2. We find that appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, 'Act') has been admitted by the High Court and two substantial questions of law have been framed for consideration of the appeal.

3. The grievance of the Revenue is that by necessary implication, the other questions raised in the memo of appeal before the High Court have been rejected.

4. We are afraid that the Revenue is under some misconception. The proviso following the main provision of Section 260A(4) of the Act states that nothing stated in sub-section(4), i.e., 'The appeal shall be heard only on the question so formulated' shall be deemed to take away or abridge the power of the Court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.

The High Court's power to frame substantial question(s)of law at the time of hearing of the appeal other than the questions on which appeal has been admitted remains under Section 260A (4). This power is subject, however, to two conditions, (one) the Court must be satisfied that appeal involves such questions, and (two) the Court has to record reasons therefor.

5. In view of the above legal position, we do not find any justifiable reason to entertain these special leave petitions. Accordingly, the Special leave petitions are dismissed.

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