Jurisdictional facts in income tax assessments cannot be collaterally challenged in civil suit when the officer is empowered to decide them.

A civil suit could not be maintained to challenge an income-tax assessment on the ground that the assessee was not a resident of British India. The assessing officer was empowered to enquire into residence, a factual issue affecting chargeability, and a mistaken conclusion on that point did not by itself mean the assessment was made without jurisdiction. The statutory appeal and reference machinery provided the proper forum for disputed factual issues arising under the Act, and Section 67 barred collateral challenge to an assessment made under the Act. The assessment therefore remained within statutory competence, and the assessee had to pursue the remedies under the Act rather than a separate civil suit.

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Issues: Whether a civil suit lay to challenge an income-tax assessment on the ground that the assessee was not a resident of British India and that the Income-tax Officer therefore acted without jurisdiction.

Analysis: The assessment was made after the Income-tax Officer enquired into and decided the question of residence, which was a factual matter the Act entrusted to the assessing authority for the purpose of determining chargeability. The statutory appeal and reference scheme showed that disputed questions of fact affecting assessment were to be decided within the machinery of the Act, and the bar in Section 67 applied to assessments made under the Act. A mistaken decision on residence did not by itself make the assessment one made without jurisdiction, so long as the officer had authority to enter upon the enquiry and reached a decision on materials before him.

Conclusion: The civil suit was barred and the assessment could not be set aside in a separate suit; the decision was in favour of Revenue.

Final Conclusion: The assessment was held to be within the statutory competence of the income-tax authorities, and the assessee was required to pursue the remedies provided by the Act rather than a civil suit.

Ratio Decidendi: Where a taxing authority is empowered to determine the facts on which chargeability depends, its decision on those jurisdictional facts is made under the Act and is not open to collateral challenge in a civil suit merely because it is alleged to be wrong.

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