1972 (5) TMI 27 - HC - Income Tax

Summary

Issues: Application for amendment of statement of case, condonation of delay in filing paper book, substitution of deceased assessee's name, application for consolidation of references, limitation period for application, applicability of Civil Procedure Code, power of court to extend time for filing paper books

The judgment pertains to an application seeking the amendment of the statement of case by substituting the names of heirs in place of a deceased assessee, along with a request for condonation of delay in filing the paper book. The original assessee, Nawab Musharaf Hossain, filed returns for the assessment years 1955-56, 1956-57, and 1957-58. Disputes arose regarding the assessment, leading to appeals and references to the Income-tax Tribunal and subsequently to the High Court. The Tribunal referred questions of law to the High Court, and an order was made for the consolidation of references. The court directed the filing of consolidated paper books within a specified time frame. Following the death of the assessee, an application was made for substitution of heirs and legal representatives. The respondents raised objections based on the Limitation Act, Civil Procedure Code, and court rules regarding the extension of time for filing paper books.

The court considered the arguments presented by both parties. The applicants contended that the application for substitution was in line with previous court orders for consolidation of references and that the Civil Procedure Code did not apply to income tax references under section 66 of the Indian Income-tax Act, 1922. They relied on a previous court decision supporting their position. On the other hand, the respondents argued that the application was time-barred and referenced a decision from another High Court regarding proper representation of a deceased assessee's estate. The court analyzed the timeline of events, noting that the assessment order was made while the assessee was alive, and the Tribunal's decision was rendered before the assessee's death. The court emphasized the validity of the order for consolidation of references and its binding nature on the parties involved.

Regarding the extension of time for filing paper books, the court clarified that it had the authority to enlarge the time as deemed necessary under the court rules. Despite the department's delay in making the application, the court granted the requested orders for substitution, condonation of delay, and extension of time for filing the paper books. However, the applicants were directed to bear the costs of the application. The Chief Justice concurred with the judgment, thereby concluding the matter comprehensively.