Commissioner Of Income Tax, Kota v. H.h. Maharav Bhim Singh

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHANAT JAIPUR BENCH, JAIPUR :: ORDER :: D.B. INCOME TAX REFERENCE NO.64/ 1986 Commissioner of Income Tax, Kota Vs. H.H. Maharav Bhim Singh 24.2.2015 HON'BLE THE ACTI NG CHI EF JUSTI CE MR. SUNI L AMBW ANIHON'BLE MR. JUSTI CE PRAKASH GUPTA Mr.R.B.Mathur with Mr.Nikhil Simlote for the petitioner-Revenue.Mr.P.K.Kasliwal for the respondent-assessee. * * * * * * * * 1.This Income Tax Reference arises out of ITA No.672/ JP/ 84 forthe assessment year 1978-79. The statement of the case was made tothe Court by the Commissioner of Income Tax on 20.9.1985, and ispending since then. 2.The substantial question of law raised in this Reference is asfollows: - “Whether on the facts and circumstances of the case, theTribunal was justified in holding that the rental income fromUmmed Bhawan Palace was exempted under Section 10(19A)of the Income Tax Act, 1961?” 3.The Division Bench of this Court noticed a conflict between the two Division Benches' judgments, and had referred the matter to theLarger Bench. 4.The Larger Bench in the connected D.B.I n com e Tax Refer en ceNo.6 4 / 1 9 8 6 ( Com m ission er of I n com e Tax , Jaipu r Vs. Sh r iMah ar ao Bh im Singh of Kot a t h r ou gh Mah ar ao Br ij Raj Sin gh ,Kot a), decided the matter on 26.3.2014, with the followingconclusions: - “55 . In our considered opinion, earlier Division Bench judgmentin Mah ar aw al Lax m an Singh Vs. C.I .T. ( 1 9 8 6) 1 6 0 I TR1 0 3 ( Raj .) , in which it was held that under Section 10(19A) ofthe Income Tax Act, 1961, the annual value of any one palacein the occupation of a Ruler is exempt from tax in computing histotal income, lays down correct law and the latter DivisionBench judgment in C.I .T. Vs. H.H.Mah ar ao Bhim Sin gh j i –( 1 9 8 8 ) 1 7 3 I TR 7 9 , having not been correctly decided, doesnot lay down good law. We, therefore, answer the referenceaccordingly.” 5.D.B.I ncom eTaxRefer en ceNo.4 1 / 1 9 8 0( Th eCom m ission er of I n com e Tax , Jaipu r Vs. H.H. Mah ar ao Bh imSin gh j i, Kot a), was decided by us on 28.1.2015, and in which wehad, after following the opinion expressed by three-Judge Bench dated26.3.2014 inD.B.I n com e Tax Refer en ce No.6 4 / 1 9 8 6( Com m ission er of I n com e Tax , Jaipu r Vs. Sh r i Mah ar ao BhimSin gh of Kot a t h r ou gh Mah ar ao Br ij Raj Sin gh , Kot a), answeredthe questions, following the Larger Bench decision. 6.This Income Tax Reference is accordingly decided, following theview and confirming the view taken by this Court in MaharawalLaxman Singh Vs. CIT (supra). The question is answered in favour ofthe Department and against the assessee. The Department willproceed in the matter, in accordance with law. 7.It is made clear that the judgment, will be subject to the decisionof the Supreme Court in the pending Special Leave Petition, againstthe judgment of three-Judge Bench of this Court. ( PRAKASH GUPTA) ,J. ( SUNI L AMBW ANI ) ,ACTG.CJ. Skant/ -, Proof Reader Al l t he cor r ect i ons made i n t he j udgment / or der have been i ncor por at edi n t he j udgment / or der bei ng emai l ed. Shashi Kant Gaur , Pr oof Reader