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TMI Blog1957 (5) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... no State law of income-tax was operative in any Part B State. It appears that the error which has crept into the judgment of the High Court has been due to misreading the year 1949-50 as being assessment year and not accounting year. Therefore, both for the assessment years 1948-49 and 1949-50 the law applicable would be the Patiala income-tax law and not the Indian Income-tax Act and consequently no appeal against the order of the Income-tax Officer was competent. Answer to question Nos. 1 & 2 : The Patiala Income-tax Act was in operation and no appeals lay and Ques no. 3 is in negative. Appeal allowed. - - - - - Dated:- 17-5-1957 - Judge(s) : BHAGWATI., KAPUR., S. K. DAS JUDGMENT The Judgment of the Court was delivered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bound to make the deductions or not. The assessee company then appealed to the Income-tax Appellate Tribunal and it held that under section 18(7) of the Patiala Income-tax Act no order was required to be passed by the Income-tax Officer and that no appeal lay to the Appellate Assistant Commissioner against the order under section 18(3a) as there was no provision for it under the Patiala Income-tax Act. Before the Tribunal it was contended that at the time when the appeals were decided by the Appellate Assistant Commissioner, the Patiala Income-tax Act had ceased to be in force and therefore the appeals were sustainable under the provisions of the Indian Income-tax Act which had been extended to all Part B States by section 13 of the Indian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to resolve the controversy, reference may be made to certain provisions of the Indian Income-tax Act, 1922, and the Finance Act of 1950. Section 13 of the Finance Act provides : "If immediately before the 1st day of April, 1950, there is in force in any Part B State other than Jammu and Kashmir or Manipur, Tripura or Vindhya Pradesh or in the merged territory of Cooch-Behar any law relating to income-tax or super-tax or tax on profits of business, that law shall cease to have effect except for the purposes of the levy, assessment and collection of income-tax and super-tax in respect of any period not included in the previous year for the purposes of assessment under the Indian Income-tax Act, 1922 (XI of 1922) for the year ending on 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce Act of 1950. The effect of the Finance Act of 1950 is that as regards assessment for the year ending 31st March, 1951, the Indian Income-tax Act would be applicable---accounting year being the year ending 31st March, 1950, and for any assessment year previous to that the Patiala Income-tax Act would be applicable. The effect of section 2(14A) proviso (b)(ii) and (iii) is that taxable territories would comprise the whole of India excluding the State of Jammu and Kashmir as respects any period included in the previous year for the purpose of making an assessment for the year ending 31st March, 1951, i. e., for the assessment year 1950-51 or the accounting year 1949-50. The application of the Indian Income-tax Act as a result of section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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