In Brief
Maharaja Amrinder Singh, a wealth tax assessee, appealed against a High Court order that had allowed the Revenue's appeal and reversed the Income Tax Appellate Tribunal's decision. The Supreme Court held that the High Court erred by deciding the Revenue's appeal under Section 27-A of the Wealth Tax Act without first formulating a substantial question of law. The Court ruled that Section 27-A, being identically worded to Section 100 of the Code of Civil Procedure, requires the High Court to formulate a substantial question of law as a prerequisite to exercising appellate jurisdiction. The High Court's failure to do so rendered its order legally unsustainable. The appeal was allowed and remanded for redecision on merits.
The lawyer headnote and full judgment text are available to registered users.