Revisional jurisdiction under income-tax law extends to orders passed after commencement, even if they relate to an earlier year.

Appeals disposed of under section 33B(4) are treated in the same manner as appeals under section 33, so a reference to the High Court under section 66(1) is competent. The commentary also explains that section 33B, brought into force from 30 March 1948, authorises the Commissioner to revise any erroneous Income-tax Officer order passed after that date, even if the order relates to an earlier previous year, unless the statute itself restricts the power by assessment year or limitation. The text further notes that the two-year bar in section 33B(2)(b) governs the revisional power, while an unraised limitation objection under section 34 was not considered.

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Issues: (i) Whether a reference to the High Court under section 66(1) of the Indian Income-tax Act was competent in respect of an appeal disposed of under section 33B(4). (ii) Whether the Commissioner could validly revise under section 33B an order passed by the Income-tax Officer in relation to a previous year ending 31 March 1947, when the revisional provision came into force only from 30 March 1948.

Issue (i): Whether a reference to the High Court under section 66(1) of the Indian Income-tax Act was competent in respect of an appeal disposed of under section 33B(4).

Analysis: An appeal under section 33B(3) and (4) is to be dealt with in the same manner as an appeal under section 33, and section 66(1) confers a right to seek reference from orders passed in such appeals. The statutory scheme therefore brings appeals under section 33B within the reference jurisdiction contemplated by section 66(1).

Conclusion: The preliminary objection was untenable and the reference was competent.

Issue (ii): Whether the Commissioner could validly revise under section 33B an order passed by the Income-tax Officer in relation to a previous year ending 31 March 1947, when the revisional provision came into force only from 30 March 1948.

Analysis: Section 23A, as it then stood, only authorised a notional distribution of undistributed profits and did not alter the company's assessment for any year; the consequential effect fell on the shareholders' assessments. Section 33B, introduced by the 1948 Amendment and made operative from 30 March 1948, empowered the Commissioner to revise any erroneous order passed by the Income-tax Officer after that date, subject to the two-year bar in section 33B(2)(b). The section was not confined to orders relating only to assessment year 1948-49 and later years. The argument based on limitation under section 34 was not entertained, as it had not been raised before the Tribunal or the revenue authorities.

Conclusion: The Commissioner had jurisdiction to revise the order, and the Tribunal was wrong in setting it aside.

Final Conclusion: The reference was answered in favour of the Department, upholding the Commissioner's revisional order under section 33B.

Ratio Decidendi: Where a revisional provision is brought into force with retrospective operative effect from a specified date, the Commissioner may revise any order passed after that date, even if the order relates to an earlier assessment year, unless the statute itself restricts such power by assessment year or limitation.

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