27. Reference to High Court
[(1) The assessee or the [Chief Commissioner or Commissioner] may, within sixty days of the date upon which he is served with notice of an order [passed before the 1st day of June, 1999] under section 24 or section 26 [or clause (e) of sub-section (1) of section 35], by application in the prescribed form, accompanied, where the application is made by the assessee, by a fee of [two hundred rupees], require the Appellate Tribunal to refer to the High Court any question of law arising out of such order and, subject to the other provisions contained in this section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the High Court.
The Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period specified in sub-section (1), allow it to be presented within a further period not exceeding thirty days.]
If, on an application made under sub-section (1), the Appellate Tribunal—
refuses to state a case on the ground that no question of law arises, or
rejects it on the ground that it is time barred; the applicant may, within [ninety days] from the date on which he is served with a notice of refusal or rejection, as the case may be, apply to the High Court, and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal to state the case to the High Court, and on receipt of such requisition, the Appellate Tribunal shall state the case: 1. Subs. by Act 4 of 1988, s. 127, for “Commissioner” (w.e.f. 1-4-1988). 2. Subs. by Act 46 of 1964, s. 25, for “an order of enhancement made by the Commissioner under section 25” (w.e.f. 1-4-1965). 3. Ins. by Act 41 of 1975, s. 96 (w.e.f. 1-4-1976). 4. Ins. by Act 3 of 1989, s. 72 (w.e.f. 1-4-1989). 5. Subs. by Act 16 of 1981, s. 29, for “one hundred and twenty-five rupees” (w.e.f. 1-6-1981). 6. Subs. by Act 45 of 1972, s. 13, for “sub-sections (3) and (5) to (10) inclusive” (w.e.f. 1-1-1973). 7. Subs. by Act 46 of 1964, s. 26, for sub-sections (1) and (2) (w.e.f. 1-4-1965). 8. Ins. by Act 27 of 1999, s. 95 (w.e.f. 1-6-1999). 9. Ins. by Act 49 of 1991, s. 79 (w.e.f. 27-9-1991). 10. Subs. by Act 46 of 1964, s. 26, for “three months” (w.e.f. 1-4-1965). 11. Ins. by s. 26, ibid. (w.e.f. 1-4-1965). [(3B) The High Court may admit an application after the expiry of the period of ninety days referred to in sub-section (3), if it is satisfied that there was sufficient cause for not filing the same within that period.]
Provided that, if in any case where the Appellate Tribunal has been required by an assessee to state a case, the Appellate Tribunal refuses to do so on the ground that no question of law arises, the assessee may, within thirty days from the date on which he receives notice of refusal to state the case, withdraw his application, and if he does so, the fee paid by him under sub-section (1) shall be refunded to him. [(3A) If, on an application made under this section, the Appellate Tribunal is of the opinion that, on account of a conflict in the decisions of the High Courts in respect of any particular question of law, it is expedient that a reference should be made direct to the Supreme Court, the Appellate Tribunal may draw up a statement of the case and refer it through its President direct to the Supreme Court.]
The statement to the High Court [or the Supreme Court] shall set forth the facts, the determination of the Appellate Tribunal and the question of law which arises out of the case.
If the High Court [or the Supreme Court], is not satisfied that the case as stated is sufficient to enable it to determine the question of law raised thereby, it may require the Appellate Tribunal to make such modifications therein as it may direct.
The High Court [or the Supreme Court], upon hearing any such case, shall decide the question of law raised therein, and in doing so, may, if it thinks fit, alter the form of the question of law and shall deliver judgment thereon containing the ground on which such decision is founded and shall send a copy of the judgment under the seal of the Court and the signature of the Registrar to the Appellate Tribunal and the Appellate Tribunal shall pass such orders as are necessary to dispose of the case conformably to such judgment. [(7) The cost of any reference to the High Court or the Supreme Court which shall not include the fee for making the reference, shall be in the discretion of the Court.] [27A. Appeal to High Court.—(1) The assessee or the Chief Commissioner or Commissioner may, within one hundred and twenty days of the day upon which he is served with notice of an order under section 24 or section 26 or clause (e) of sub-section (1) of section 35, file on or after the 1st day of October, 1998, [but before the date of establishment of the National Tax Tribunal] an appeal before the High Court. [(1A) The High Court may admit an appeal after the expiry of the period of one hundred and twenty days referred to in sub-section (1), if it is satisfied that there was sufficient cause for not filing the same within that period.]
An appeal shall lie to the High Court [before the date of establishment of the National Tax Tribunal] from every order passed in appeal by the Appellate Tribunal, under sub-section (1) of section 24 only if the High Court is satisfied that the case involves a substantial question of law.
In an appeal under this section, the Memorandum of Appeal shall precisely state the substantial question of law involved in the appeal
Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.
The appeal shall be heard only on the question so formulated and the respondent shall, at the time of hearing of the appeal, be allowed to argue that the case does not involve such question: 1. Ins. by Act 14 of 2010, s. 55 (w.r.e.f. 1-6-1981). 2. Ins. by Act 46 of 1964, s. 26 (w.e.f. 1-4-1965). 3. Subs. by s. 26, ibid., for sub-sections (7), (8) and (9) (w.e.f. 1-4-1965). 4. Ins. by Act 21 of 1998, s. 72 (w.e.f. 1-10-1998). 5. Ins. by Act 49 of 2005, s. 30 and the Schedule. This Act has been struck down by the Supreme Court’s Order dated 25th September, 2014 in the Madras Bar Association Vs. Union of India. 6. Ins. by Act 14 of 2010, s. 56 (w.r.e.f. 1-10-1998). 7. The words “, and, where the appeal is made by the assessee, shall be accompanied by a fee of five thousand rupees” omitted by Act 27 of 1999, s. 96 (w.e.f. 1-6-1999).
Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the Court to hear, for reasons to be recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.
The High Court shall decide the question of law so formulated and deliver such judgment thereon containing the grounds on which such decision is founded and may award such cost as it deems fit.
The Assessing Officer shall give effect to the order of the High Court on the basis of a certified copy of judgment delivered under sub-section (6).] [(8) The provisions of the Code of Civil Procedure, 1908 (5 of 1908) relating to appeals to High Court shall, so far as may be, apply in the case of appeals under this section.]