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2017 (8) TMI 537 - SC - Income TaxCourt fees for appeal against the orders passed by the Income Tax Appellate Tribunal - scope of amendment - Held that - (i) Wherever assessee is in appeal in the High Court which is filed under Section 260A of the IT Act, if the date of assessment is prior to March 06, 2003, Section 52A of the 1959 Act shall not apply and the court fee payable shall be the one which was payable on the date of such assessment order. (ii) In those cases where the Department files appeal in the High Court under Section 260A of the IT Act, the date on which the appellate authority set aside the judgment of the Assessing Officer would be the relevant date for payment of court fee. If that happens to be before March 06, 2003, then the court fee shall not be payable as per Section 260A of the IT Act on such appeals.
Issues Involved:
1. Determination of applicable court fee on appeals filed under Section 260A of the Income Tax Act, 1961. 2. Retrospective applicability of Section 52A of the Kerala Court Fees and Suits Valuation Act, 1959. Detailed Analysis: 1. Determination of Applicable Court Fee: By an amendment in the Income Tax Act, 1961, Section 260A was inserted in 1998, providing for statutory appeal against orders passed by the Income Tax Appellate Tribunal. Initially, sub-section (2)(b) of Section 260A prescribed a court fee of ?2,000/- for such appeals. However, this provision was omitted effective June 01, 1999, making the State Legislature competent to legislate on the court fee for such appeals. In Kerala, the Kerala Court Fees and Suits Valuation Act, 1959 governs court fees, with Section 52A, inserted by an Amendment Act of 2003, specifying the fee for appeals against orders of the Income Tax Appellate Tribunal or Wealth Tax Appellate Tribunal. 2. Retrospective Applicability of Section 52A: The core issue was whether the court fee prescribed under Section 52A of the 1959 Act applies to appeals filed on or after October 26, 2002. The State of Kerala contended that the fee is applicable to all such appeals. The appellant argued that the right to appeal, a substantive right, accrued when the proceedings were initiated, thus the applicable court fee should be as per the unamended provisions existing at that time. The High Court rejected this plea, holding that any appeal filed on or after October 26, 2002, is governed by Section 52A of the 1959 Act. Judgment Analysis: Substantive Right of Appeal: The Supreme Court reiterated that the right of appeal is a substantive right, not merely procedural. This right vests when proceedings are initiated and cannot be impaired by subsequent legislation unless expressly stated. This principle was supported by precedents such as Hosein Kasam Dada (India) Ltd. v. State of Madhya Pradesh and State of Bombay v. Supreme General Films Exchange Ltd., which established that amendments affecting substantive rights do not have retrospective effect unless explicitly stated. Application in Tax Matters: The Court clarified that in tax matters, the relevant date for determining the applicable court fee for an assessee's appeal is the date of assessment, while for the Revenue's appeal, it is the date when the disputed demand is negatived by the appellate authority. High Court's Error: The Supreme Court found the High Court's logic flawed, noting that the vested right to appeal under Section 260A accrued from October 01, 1998, when the provision was introduced. The omission of the court fee provision in 1999 did not retrospectively apply Section 52A of the 1959 Act, which was effective from March 06, 2003, without retrospective effect. Final Holding: 1. For assessee appeals under Section 260A, if the date of assessment is prior to March 06, 2003, Section 52A of the 1959 Act does not apply, and the court fee payable is as per the unamended provisions. 2. For Revenue appeals, the relevant date for court fee determination is when the appellate authority set aside the Assessing Officer's judgment. If this date is before March 06, 2003, the court fee is not governed by Section 52A of the 1959 Act. Conclusion: The appeals were allowed, setting aside the High Court's decision and establishing that the court fee applicable is based on the date of assessment or the appellate authority's decision, not the date of filing the appeal in the High Court.
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