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Applications under Section 66(3) of the Indian Income-tax Act for reference to the Chief Court regarding the liability of the applicant, a Hindu widow, to be assessed under the Act and her status as a member of a joint Hindu family. Analysis: The applications before the Commissioner of Income-tax sought reference to the Chief Court due to the denial of the applicant's liability to be assessed under the Indian Income-tax Act and the question of whether she should be deemed a member of a Hindu undivided family. The Commissioner rejected the applications, stating that the applicant had not raised the relevant question before the Income-tax Officer, rendering the appeal proceedings before the Assistant Commissioner ultra vires. However, the Court disagreed with this view, emphasizing that the Act does not require the assessee to deny liability before the Income-tax Officer to have the right of appeal under Section 30. The Court highlighted that the prescribed form for notice does not include a specific column for the assessee to state their liability to assessment, and the acceptance of the return by the Income-tax Officer does not equate to an admission of liability. The right of appeal under Section 30(1) is not limited to cases where the assessee contested liability before the Income-tax Officer but extends to denials made during the appeal process. The Court emphasized the broad language of the statute and rejected the argument that failure to contest liability before the Income-tax Officer amounted to consent to assessment. Regarding the contention that the applicant did not establish receipt of the assessed sum as a member of a Hindu undivided family, the Court held that this issue was not raised earlier in the proceedings and could not be introduced at a later stage. The assessment was based on the assumption that the applicant received the amount as a member of a joint Hindu family, and the question of her status was pivotal to the case. The Court concluded that the Commissioner should refer the case to the Chief Court for decision, allowing the applications and awarding costs to the applicant. In summary, the judgment clarified the rights of the assessee to appeal under the Indian Income-tax Act, emphasizing that denial of liability need not be raised before the Income-tax Officer to maintain the right of appeal. The Court directed the Commissioner to refer the case to the Chief Court for decision on the applicant's status as a member of a joint Hindu family and her liability to be assessed under the Act.
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