Commissioner of Income Tax vs Steel Ingots Pvt. Ltd.

V.S. Kokje, J.—This is an application u/s 256(2) of the Income Tax Act, 1961 (for short "the Act"), by the Income Tax Commissioner, Bhopal, praying for a direction to the Income Tax Appellate Tribunal, Indore Bench, to frame the following questions and refer them to this court for its opinion :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the capital subsidy received by the assessee during the year should not be deducted from the cost of plant and machinery for the purpose of development rebate, initial depreciation, depreciation, etc.?

Whether, on the facts and in the circumstances of the case, the Tribunal has jurisdiction to enlarge the scope of the relief already granted, providing relief regarding development rebate and initial depreciation as well ?"

An application u/s 256(1) of the Act was moved before the Tribunal which rejected it following the decision of this court in COMMISSIONER OF Income Tax Vs. BHANDARI CAPACITORS PRIVATE LTD., . A Division Bench of this court in Commissioner of Wealth-tax Vs. Smt. Usha Devi (Lrs. of H.H. Maharaja Yeshwant Rao Holkar), has held that where the Tribunal has passed an order following the decision of the High Court in, another case, the court would be justified in rejecting an application u/s 256(2) and pendency of the point before the Supreme Court is no ground for allowing the application. In view of the aforesaid decisions, no referable question survives before us. The application is, therefore, rejected with no order as to costs.