Limitation for reference applications: valid fee payment within time satisfies section 66(1) even if the challan reaches later.

An application under section 66(1) of the Indian Income-tax Act, 1922 was treated as timely where it was filed within sixty days, the prescribed fee was deposited in the treasury within that period, and the challan reached the Tribunal later. The requirement that the application be accompanied by the fee was construed pragmatically: valid payment within limitation, in the manner permitted by the rules, satisfied the statute even without simultaneous physical receipt of the challan by the Tribunal. The Tribunal's view that the applications were time-barred was set aside, and the reference applications were to be dealt with according to law.

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Issues: Whether an application under section 66(1) of the Indian Income-tax Act, 1922 is within time when the application is filed within sixty days, the prescribed fee is deposited in the treasury within that period, but the challan reaches the Appellate Tribunal after expiry of the period.

Analysis: Section 66(1) requires the application to be made within sixty days and to be accompanied by a fee of one hundred rupees. The requirement that the fee should accompany the application was construed in a practical manner, not as demanding simultaneous physical delivery in the same envelope or at the same moment. Under the relevant rules, payment of the fee could validly be made in the treasury, and the Tribunal was not bound to receive cash directly. Where the fee was actually deposited within limitation and the challan was sent within time, the substance of the statutory requirement was satisfied, even though the challan was received later.

Conclusion: The payment was a valid payment within section 66(1), and the applications were not barred by limitation.

Final Conclusion: The applications succeeded, the Tribunal's order rejecting them as time-barred was set aside, and the Tribunal was directed to deal with the reference applications in accordance with law.

Ratio Decidendi: A statutory requirement that an application be accompanied by a fee is complied with when the fee is validly paid within the limitation period in the manner permitted by the rules, even if the challan reaches the Tribunal after expiry of time, provided the application itself was filed within time.

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