1956 (2) TMI 79 - HC - Income Tax

Relief under Income Tax Act not appealable. Appeal dismissed, applicant to pay costs.

M.M.P.L.S. Ramaswami Chettiar Versus The Commissioner of Income Tax, Madras

The High Court held that the relief claimed under Section 25(4) of the Income Tax Act was not appealable under the Act, rendering the reference to the ... - Issues:1. Interpretation of Section 25(4) of the Income Tax Act.2. Time limitation for claiming relief under Section 25(4).3. Competency of appeals in relation to Section 25(4) applications.Analysis:1. The case involved a question referred to the Madras High Court for determination under Section 66(1) of the Income Tax Act regarding the assessment for the 1941-42 assessment year. The assessment was completed on 24-3-1942, and relief under Section 25(4) was claimed by the assessee on his application dated 16-3-1950, raising the issue of whether this relief was due and required further investigation on facts.2. The facts of the case revolved around a partition in a Hindu undivided family in 1941, which was accepted by the departmental authorities under Section 25-A of the Act. The assessment for the year 1941-42 was completed on 24-3-1942, and subsequent appeals led to a final assessment order by the Income Tax officer on 15-4-1944. The assessee later claimed relief under Section 25(4) for the period 13-4-1940 to 14-3-1941, which was denied by the Commissioner and subsequent authorities.3. The applicant filed a miscellaneous application before the Income Tax officer, which was rejected based on previous orders and deemed incompetent for appeal by the Appellate Assistant Commissioner. The matter was further appealed to the Appellate Tribunal, which held that the claim for relief was barred by limitation and dismissed the appeal. The Tribunal then referred the question to the High Court for determination.4. The High Court considered the interpretation of Section 25(4) and the time limitation for claiming relief under this provision. The Court noted that the claim for relief was not covered by any specific provisions of the Income Tax Act, making it ineligible for appeal under Section 30. The Court upheld the preliminary objection raised by the Commissioner's counsel, stating that no appeal lay to the Appellate Assistant Commissioner or the Tribunal from the order passed on the application, rendering the reference to the High Court incompetent.5. The Court relied on the decision of the Supreme Court to establish the legal position that the benefit under Section 25(4) is available to an assessee who satisfies the terms of the provision. However, in the present case, the application filed was not appealable under the Act, and therefore, no appeal could be entertained by the higher authorities. As a result, the Court declined to answer the question referred and directed the applicant to pay costs.This detailed analysis of the judgment highlights the key legal issues, interpretations of relevant provisions, and the Court's decision regarding the competency of appeals in relation to Section 25(4) applications.