9911796707
TMI Blog2005 (2) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal, New Delhi, has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for opinion to this court: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the return signed by Mr. K.K. Varshney was a valid return as he acted as an agent of the assessee and also in further holding that the loss claimed therein should have been considered in correct perspective?" The reference relates to the assessment year 1979-80. Briefly stated the facts giving rise to the present case are as under: The respondent assessee is a co-operative society. It is being assessed to income-tax in the status ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for carry forward of the losses also. It may be mentioned here that the return which was filed on June 30, 1979, was signed by Sri K.K. Varshney, accounts executive of the respondent-society. When asked to give proof that the principal officer (general manager) was not in a position to sign the return and the power had been given to him to sign the return in the absence of the principal officer, it was submitted as follows: "On the last day of June 1979, the transfer order of the then principal officer, Sri D.N. Tripathi, PCS, was received from the State Government as per Radiogram No. 545/I/II-16/19/79, dated June 30, 1979 and he was relieved of his charge on July 6, 1979. The principal officer was under transfer on the last day of June, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer thereof. The principal officer has been defined under section 2(35) of the Act, which reads as under: "2.(35) 'principal officer', used with reference to a local authority or a company or any other public body or any association of persons or any body of individuals, means- (a) the secretary, treasurer, manager or agent of the authority, company, association or body, or (b) any person connected with the management or administration of the local authority, company, association or body upon whom the Income-tax Officer has served a notice of his intention of treating him as the principal officer thereof;" From the reading of the aforesaid provision it is clear that the return can be signed by the agent also. The question is whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecessity', Agency of necessity arises wherever a duty is imposed upon a person to act on behalf of another apart from contract, and in the circumstances of emergency, in order to prevent irreparable injury. It may also arise where a person carries out the legal or moral duties of another in the absence or default of that other, or acts in his interest to preserve his property from destruction"
The aforesaid paragraph is fully applicable to the present case.
In view of the foregoing discussion we do not find any legal infirmity in the order. We accordingly answer the question referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue. There shall be however, no order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
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