Commissioner of Wealth-tax vs Princess Usha Trust

Shri Mukati, learned counsel for the applicant, on show cause notice having been served, Shri J.W. Mahajan, learned counsel for the non-applicant.

They are heard. The applicant, namely, the Commissioner of Wealth-tax, Bhopal, has submitted this reference application u/s 27(3) of the Wealth-tax Act, 1957, calling upon the Income Tax Tribunal to make a reference to this court on the following substantial questions of law :

(1) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the Commissioner (Appeals) was correct in cancelling the wealth-tax assessments in the light of the decision of the Hon''ble High Court when the same has not been accepted and is being contested in appeal before the Supreme Court ?

(2) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the assessee-trust stood extinguished on transfer of beneficial interest to Devi Ahilyabai Holkar ?"

The questions raised in this case have already been considered and decided by this court in the decision in Princess Usha Trust Vs. Commissioner of Income Tax, .

Against the said decision, the petitioner has already approached the Supreme Court where a SLP is already pending.

Learned counsel for the applicant, however, submitted that even though the SLP is pending and the point had been decided by this court in the judgment, referred to above, still this court can call the Tribunal to make a reference as submitted by them.

However, Shri Mahajan, learned counsel for the non-applicant, relying on a decision reported in 157 ITR 383 submitted that in such a case when the matter is pending before the Supreme Court, this is not a valid ground to call upon the Tribunal to make a reference as the same point has already been decided by this court between the same parties.

Thus, after hearing learned counsel and after considering the case law, we decline to call upon the Tribunal to make a reference, as prayed for by the applicant.

The reference application is, therefore, rejected with no orders as to costs.