2000 INSC 1323
                                        SUPREME COURT OF INDIA

                                           Commissioner of Income-Tax

                                                           Vs.

                                              Laxmi Wine Merchants

                            (S.B. Bharucha, N. S. Hegde and Y.K. Sabharwal JJ.)

                                                      06.12.2000

                                                       ORDER

1. The High Court declined to call for a reference of the following question:

"Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is
justified in holding that the assessee was entitled to the benefits of registration in spite of
contravention of rules 38 and 39 of the A. P. Foreign Liquor and Indian Liquor Rules,1970 ? "

2. It did so because of an earlier decision in C1T v. Nalli Venkataramana. The Revenue is, therefore,
in appeal by special leave. The decision of the High Court in the case of Nalli Venkataramana was
considered by this court in Bihari Lal Jaiswal v. CIT [1996] 217 ITR 746 and was found
unacceptable. It is, therefore, clear that a question of law does arise which requires the consideration
of the High Court, in the light of the judgment of this court in the case of Bihari Lal Jaiswal [1996]
217 ITR 746.

3. The civil appeals are allowed. The order under appeal is set aside. The Tribunal shall refer to the
High Court the question aforestated, having drawn up a statement of case.

4. No order as to costs.