1970 (11) TMI 22 - HC - Income Tax

Petition dismissed on groud of irregularities in presentation of petition - - whether such petition can be alllowed on review - since review was not due to any error apparent review is not permitted

Summary

Issues:
Assessment of tax on an individual, appeal process in tax matters, validity of writ petition, delay in filing petition, review of judgment, grounds for review, impleading parties in a petition, rejection of reference application.

Analysis:
The judgment by the High Court of Allahabad involved the respondent, who was assessed to tax as a Hindu undivided family for the year 1944-45. Subsequently, two other individuals were also assessed on a portion of the same income. The respondent filed appeals against the assessment, which were dismissed by the Appellate Assistant Commissioner. The Income-tax Appellate Tribunal then modified the assessment order. The respondent filed a writ petition challenging the sale of his house for tax recovery, which was initially dismissed but later reviewed and allowed by a single judge. The appeal by the Income-tax Officer questioned the validity of the writ petition and the procedural irregularities in the court's proceedings.

The court highlighted the importance of procedural adherence in adjudication and noted that the writ petition did not seek to quash the assessment orders but challenged the tax recovery process. The court criticized the delay of over six years in filing the writ petition and questioned the grounds for review. The respondent's lack of awareness or action regarding the Income-tax Appellate Tribunal's order was also scrutinized, as the Tribunal was not initially impleaded in the petition.

The judgment emphasized that a review under article 226 should be based on valid grounds, which were found lacking in this case. The court rejected the notion of reviewing an order based on the rejection of a reference application. The respondent's failure to implead relevant parties and submit necessary documents along with the initial writ petition was also considered a procedural flaw.

Ultimately, the court allowed the appeal, set aside the single judge's order, and dismissed the writ petition with costs. The judgment highlighted the need for strict adherence to procedural rules and the importance of timely and accurate legal actions in tax matters to ensure fair and efficient resolution of disputes.