Jurisdictional objection may be raised in second appeal despite earlier omission, and the Tribunal must refer the question

A jurisdictional objection can be raised in second appeal before the Tribunal even if it was not taken before the assessing authority, unless the statute or rules expressly bar such a plea. Because a jurisdictional issue goes to the root of the matter, it cannot be excluded merely on the ground of earlier omission. Where that question arises from the appellate order, the Tribunal must consider it and cannot refuse to state the case simply because it did not record a final conclusion on that issue. The jurisdictional question was therefore required to be referred for the High Court's opinion, and the assessee succeeded.

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Issues: Whether an objection to jurisdiction, not raised before the assessing authority, could still be raised in second appeal before the Tribunal and form the basis of a reference to the High Court.

Analysis: The governing principle applied was that a jurisdictional objection goes to the root of the matter and cannot be shut out merely because it was not taken earlier, unless the statute or rules expressly bar such a plea. The Tribunal's order did not reach any real conclusion on the jurisdictional question, yet the question clearly arose from the appellate order and required consideration. The Court therefore held that the Tribunal was not justified in refusing to state the case on that ground.

Conclusion: The jurisdictional issue was required to be referred for opinion, and the assessee succeeded.

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