No appeal lies against an order dropping rectification proceedings under the Wealth-tax Act; the Department's appeal was incompetent.

An appeal did not lie to the Appellate Tribunal against an order of the Appellate Assistant Commissioner dropping rectification proceedings under the Wealth-tax Act, because section 24 did not authorise such an appeal. The court applied the same principle recognised under the Indian Income-tax Act, 1922, where no appeal was available from an order on rectification. The Department's appeal was therefore incompetent.

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Issues: Whether an appeal lay to the Appellate Tribunal against the Appellate Assistant Commissioner's order dropping rectification proceedings initiated under section 35 of the Wealth-tax Act.

Analysis: The Tribunal held that section 24 of the Wealth-tax Act did not provide for an appeal against an order passed by the Appellate Assistant Commissioner dropping rectification proceedings. The Court noted that a similar position had been recognised under the Indian Income-tax Act, 1922, where no appeal was held to lie against an order of rectification, and applied the same principle to the Wealth-tax Act.

Conclusion: No appeal lay to the Tribunal against the order dropping the rectification proceedings, and the Department's appeal was incompetent.

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