Statutory appeal barred where assessment was genuinely made under Section 23(4), excluding challenge to tax liability.

A statutory right of appeal under Section 30(1) of the Income-tax Act, 1922 is expressly curtailed by the proviso where the assessment is made under Section 23(4) or under that sub-section read with Section 27. An assessment genuinely made under Section 23(4) is treated as a penal consequence for non-compliance with the requisition under Section 22(4), and the appellate authority cannot examine the merits of tax liability or the contention that the assessee fell outside the Act. The only relevant inquiry is whether the assessment was in fact made under Section 23(4); if so, the appeal is barred.

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Issues: Whether an assessee assessed under Section 23(4) of the Income-tax Act, 1922 could maintain an appeal under Section 30(1) on the ground that he was not liable to be assessed under the Act, or whether the proviso to Section 30(1) barred such an appeal.

Analysis: The right of appeal under Section 30(1) is statutory and is expressly curtailed by the proviso, which provides that no appeal shall lie in respect of an assessment made under Section 23(4), or under that sub-section read with Section 27. The assessment under Section 23(4) is treated as penal consequence for failure to comply with the requisition under Section 22(4). Once the Income-tax Officer has genuinely acted under Section 23(4), the Assistant Commissioner cannot go into the merits of the assessee's liability to tax or into the contention that the assessee was outside the scope of the Act. The only relevant inquiry is whether the assessment was in truth made under Section 23(4); if it was, the appeal is barred.

Conclusion: The proviso to Section 30(1) barred the appeal, and the assessee was not entitled to challenge the assessment on the ground of non-liability to tax.

Ratio Decidendi: Where an assessment is genuinely made under Section 23(4) of the Income-tax Act, 1922, the proviso to Section 30(1) excludes the assessee's right of appeal altogether, including a challenge that he was not liable to be assessed under the Act.

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