1935 (1) TMI 24 - HC - Income Tax

Summary

Issues:
1. Proper form of notice of motion for appeal to His Majesty in Council.
2. Application of Chapter XXXIII, Rule 3, in income tax appeals.
3. Jurisdiction of High Court in income tax matters.
4. Procedure for references under Section 66 of the Income Tax Act.
5. Rules governing appeals to His Majesty in Council.

Analysis:

1. The first issue in this case pertains to the form of the notice of motion served for an appeal to His Majesty in Council. The respondents objected that the notice served was insufficient as it did not call upon the opposite party to show cause as required by Chapter XXXIII, Rule 3 of the Rules and Orders of the Court. The Court allowed the petitioner to amend the notice, and upon re-service, the objection was addressed.

2. The second issue revolves around the application of Chapter XXXIII, Rule 3 in income tax appeals. The Advocate-General argued that income tax appeals are governed solely by the provisions of the Code of Civil Procedure, not Chapter XXXIII. This argument was crucial as it challenged the long-standing assumption that Chapter XXXIII governed the practice on petitions for leave to appeal to the Privy Council in income tax matters.

3. The third issue concerns the jurisdiction of the High Court in income tax cases. It was clarified that the High Court does not act as a court of appeal in income tax cases. Its jurisdiction is limited to the disposal of references on points of law under Section 66 of the Income Tax Act. The Court's functions are strictly confined to this specific role.

4. The fourth issue addresses the procedure for references under Section 66 of the Income Tax Act. Section 66 provides for the High Court to decide questions of law raised in connection with income tax assessments. The Court is mandated to deliver its judgment on such cases and send a copy to the Commissioner for further action accordingly.

5. The final issue pertains to the rules governing appeals to His Majesty in Council. The judgment highlights the provisions under Section 66-A of the Income Tax Act, which outline the procedure for appeals to His Majesty in Council. The judgment certifies the case as a fit one for appeal to His Majesty in Council, granting the necessary certificate for the petition with costs.

In conclusion, the judgment clarifies various procedural and jurisdictional aspects related to income tax appeals and the process of appealing to His Majesty in Council. It underscores the specific roles and limitations of the High Court in handling income tax matters and emphasizes the adherence to the prescribed procedures outlined in the relevant legal provisions.