1986 (9) TMI 39 - HC - Income Tax

Summary

Issues:
1. Timeliness of the application for appeal certification.
2. Whether substantial questions of law arise for appeal to the Supreme Court.

Analysis:
1. Timeliness of the application for appeal certification:
The judgment in question was delivered on April 3, 1978, and the application for appeal certification was filed by the Commissioner of Income-tax, West Bengal. The respondent contended that the applicant was negligent in not obtaining the certified copy of the order promptly. The applicant argued that the time requisite for obtaining both the certified copy of the judgment and the order should be excluded in computing the period of limitation. The court considered the provisions of section 66A(2) and section 67A of the Indian Income-tax Act, 1922, and noted that the time required for obtaining a certified copy of the order cannot be excluded in computing the period of limitation. Despite this, the court acknowledged the earlier Division Bench's observations and condoned any delay on the part of the applicant.

2. Substantial questions of law for appeal:
The judgment raised questions regarding the Income-tax Officer's authority to levy penalties, the modification of the assessment by the Appellate Assistant Commissioner, and the jurisdiction to proceed based on the findings of the appellate authority. The court referred to relevant case laws, including decisions from the Allahabad High Court and the Gujarat High Court, along with a Supreme Court ruling. It was concluded that the power to impose penalties depended on the satisfaction of the Income-tax Officer during proceedings under the Act. Since the proceedings in question were before the Appellate Assistant Commissioner and not the Income-tax Officer, the court found no substantial question of law requiring referral to the Supreme Court. Consequently, the application for appeal certification was dismissed.

In conclusion, the High Court of CALCUTTA, comprising Judges Dipak Kumar Sen and Mrs. Monjula Bose, dismissed the application for appeal certification by the Commissioner of Income-tax, West Bengal, as it did not find substantial questions of law necessitating an appeal to the Supreme Court. The court also addressed the timeliness of the application, considering the provisions of the Indian Income-tax Act, 1922, and relevant case laws.