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TMI Blog1979 (6) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... er as that the ITO having no concern with the case, could not under law file any appeal." Elaborating objection No.(ii), Sh. B. S. Gupta submitted that the respondent-firm was in existence only for one year and after the assessment was raised in the case on 28th April, 1975 the firm became non-est and there could be no question of any change of jurisdiction. According to Sh. Gupta, if at all the Commissioner could direct an ITO to file appeal it could be the ITO, 'B' Ward, Sirsa and no other authority. Sh.Gupta for his submission relied on the provisions of ss.250(7), 253(2) and (3), 254(3), 256(2) and 260(1) of the Act. He also invited our attention to the Punjab High Court judgment in the case of R.B.L. Benarsi Dass Co. Ltd. vs. CIT(1), Calcutta High Court judgment in the case of CIT vs. S. Sarkar Co.(2) and the Supreme Court judgment in the case of CIT vs. Anil Kumar Roy Chowdhury and Another.(3) Shri Gupta also referred to the following two judgements: Keshav Silk Mills vs. Income-tax Tribunal(4), Madan Lal vs. Income-tax Tribunals(5). 3. For the Revenue, Shri C.S. Jain, Senior Authorised Representative, made a short effective reply against the preliminary objectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly mentioned, an opportunity should be given to rectify such irregularity. Sh. Jain next referred us to the Supreme Court judgment in the case of CIT vs. Calcutta Discount Co. Ltd(6), and drew our attention to the following observations at page 11:- "The procedure adopted by the Tribunal appears to us to be somewhat strange. The Tribunal, instead of dealing with the substance of the matter, appears to have been unduly influenced by procedural technicalities. We are also not impressed with the conclusion of the Tribunal that the appeal memo was not in accordance with law. No specific formula is necessary for seeking relief at the hands of any Court or Tribunal if the necessary grounds are taken in the appeal memo." He submitted that when grounds of appeal as also verification were signed by the ITO, 'C' Ward, Hissar, there could be no question of any irregularity at all. 6. The Revenue's Representative relied on Rules 12 and 14 of the Income-tax (Tribunal) Rules and submitted that the type of error, if any, by not mentioning the correct designation of the ITO in the title should be got removed by giving opportunity. r. 14 he referred to for the proposition that what is nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the asst. yr. 1947-48 by the ITO, Distt 1(2), Calcutta including therein income from forests in Pakistan. The assessee appealed to the AAC who held that the income was exempt from tax. In the meantime, the assessee changed its residence and as a consequence it came within the jurisdiction of the ITO, Distt. VI, Calcutta who filed an appeal before the Tribunal. The assessee raised a preliminary objection that the appeal was incompetent because it was not filed by the ITO, Distt. 1(2), Calcutta who had framed assessment, as stated above. The matter ultimately went to the Supreme Court and it was held that the ITO, Distt VI had the necessary jurisdiction after the assessee changed its residence. He was concerned with the appeal and the Commissioner could direct him to file the appeal. Therefore, in the present case we hold that it was the ITO, 'C' Ward, Hissar who was competent to file appeal on the directors of the Commissioner. 9. The next issue which arises for our consideration is whether after the assessment was raised in the respondent's case on 28th April, 1975 by the ITO 'B' Ward, Sirsa, it became an extinct case. Interestingly, the assessee filed an appeal against the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecognise the rule that an appeal of a case is a valuable right to a litigant and, in the absence of unmistakable indications to the contrary, statutes regulating appeals are given liberation construction. It is also recognised that an appeal is a remedy that is favoured in law and an important right, which should never be denied, unless its forfeiture or abandonment is conclusively shown and, in case of doubt, an appeal should always be allowed rather than denied." We also like to refer to the Supreme Court judgment in Raja Kulkesri vs. State of Bombay(8) for the proposition that validity of an appeal is for the appellate Court to decide and not for the litigant party to question. 12. We, therefore, reject each of the preliminary objections raised for the respondent that the Revenue's appeal is incompetent as not legally filed and, therefore, not maintainable. 13. The grievance projected from the memorandum of appeal is that the AAC wrongly directed the ITO to grant registration to the assessee-firm. The circumstances which prompted the ITO to refuse registration to the firm have been stated by the AAC in Para 1 of his order and there is no dispute regarding that. The rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tamp-paper duly signed by Amin Lal was furnished at the same time. (vi) The ITO held that the decision of the Bombay High Court in the case of CIT vs. R. Dwarka Dass Co (1971) 80 ITR 283 was distinguishable because in this case even the application for registration was not signed by one of the persons shown as partner, whereas in the case of R. Dwarka Dass Co., there was no such deficiency. (vii) The ITO also took objection to the effect that one Lekh Ram, who was not shown as partner, happened to sign both the original partnership deed and the original application for registration. (viii) The appellant's plea that since some of the partners of the firm had been individually assessed in respect of their shares from the firm, the ITO was bound to register the firm, did not find favour with the ITO. He relied on the decision of the Tribunal, Chandigarh Bench, in their order dt. 14th Oct., 1974 in ITA Nos. 1222 and 1223 of 1972-73 (asst. yr. 1968-69 and 1969-70) in the case of ITO vs. M/s. EMM CEE Engineers. The ITO concluded that the instrument of partnership was ab initio void inasmuch as it was signed by one Lakh Ram, who was not a partner, at all, and Amin Lal, who wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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