A.S. Sandhu and Company Vs. Commissioner of Income-tax - Court Judgment |
| Direct Taxation |
| Orissa High Court |
| Feb-12-1992 |
| S.J.C. No. 5 of 1983 |
| A. Pasayat and ;S.K. Mohanty, JJ. |
| [1992]196ITR323(Orissa) |
| Income Tax Act, 1961 - Sections 256 |
| A.S. Sandhu and Company |
| Commissioner of Income-tax |
.....agreement between the orissa state financial corporation and the loanee is a pure and simple contract governed by the provisions of the contract act, 1872 read with the provisions in the act, 1951 and its rules. on the other hand, a confiscation proceeding under the act, 1972 is punitive in nature for commission of a forest offence. thus, by virtue of the provision in section 56 read with section 64 (2) of the act, 1972, the action taken for confiscation of the vehicle cannot be extended to grant protection of the loan advanced by orissa state financial corporation. by doing that it amounts to grant premium to the pick-pockets in as much as, by making payment of the confiscation amount in favour of the orissa state financial corporation the loan burden of the accused of the forest offence is reduced to the extent of the sale proceeds of the vehicle. in other words, on payment of the sale proceeds of the confiscation proceeding to the orissa state financial corporation towards discharge of the loan account of the accused of a forest offence, it would lead to a system to reward him by repayment of his loan. then it does not become a penalty nor the action become punitive,.....order--question raised before nor adjudicated upon by tribunal--reference under s. 256(1) not permissible.held :a reference under s. 256(1) is permissible where any question of law arises out of the order of the tribunal passed under s. 254 .since the question was neither pleaded nor adjudicated, it does not arise out of the order of the tribunal.income tax act 1961 s.256(1)
ORDER
--Question raised before nor adjudicated upon by Tribunal--Reference under s. 256(1) not permissible.
HELD :
A reference under s. 256(1) is permissible where any question of law arises out of the order of the Tribunal passed under s. 254 .Since the question was neither pleaded nor adjudicated, it does not arise out of the order of the Tribunal.
Income Tax Act 1961 s.256(1)