9911796707
|
Home
Issues:
1. Maintainability of the assessee's appeal to the Appellate Assistant Commissioner under section 30 of the Income-tax Act, 1922. Detailed Analysis: The case involved a Hindu undivided family that was assessed as such until the assessment year 1942-43, with a disruption occurring on November 9, 1942. An application under section 25A of the Income-tax Act was filed, and the partition was accepted on January 21, 1945. Subsequently, a new partnership firm was formed, and an assessment for the year 1943-44 was made. The assessee filed an application nearly 20 years later under section 25(4) or alternatively under section 23(3) claiming relief, which was rejected by the Income-tax Officer on July 5, 1963. The Appellate Assistant Commissioner also rejected the appeal based on the grounds that no appeal was provided for against an order under section 25(4). The Tribunal, however, held that an appeal was maintainable under section 30 of the Income-tax Act, leading to the reference of the question of law. The Commissioner of Income-tax relied on previous cases in support of the rejection of the appeal. The High Court analyzed the language of section 30 of the Income-tax Act, emphasizing that the right of appeal is a creature of the statute. The court noted that while section 30 provides a right of appeal against certain orders, it does not expressly provide for appeals against orders under section 25(3) or section 25(4). The court opined that the legislative intent was to exclude orders under these sections from the right of appeal. It was further highlighted that the assessment on the new firm for the year 1943-44 was made in 1943, and an appeal could have been made against this order within 30 days, where the issue of relief under section 25(4) could have been raised but was not. The court concluded that the order of the Income-tax Officer in 1963 was not a final assessment for the year 1943-44, as the assessment had been concluded earlier. The court referred to a similar case where it was held that no appeal lies if the matter is not covered by section 30 of the Act. Drawing parallels, the court answered the question of law in the negative, in favor of the revenue and against the assessee. The judgment emphasized the limitations of the right of appeal as provided by the statute and the importance of adhering to the specific grounds and orders mentioned in the relevant sections of the Income-tax Act.
|
