Vested right of appeal controls court fee liability under income-tax appeals; later enhanced fee cannot apply retrospectively.

The right of appeal, including the court fee regime attached to it, is a vested substantive right and cannot be made more onerous by a later statute without express or necessary retrospective effect. For assessee appeals under Section 260A, Section 52A of the Kerala Court Fees and Suits Valuation Act did not apply where the assessment order pre-dated 06.03.2003, so fee was governed by the law in force on that date. For Revenue appeals, the relevant date was the appellate authority's order reversing or negativing the assessment, and Section 52A did not apply if that date was before 06.03.2003.

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Issues: (i) Whether Section 52A of the Kerala Court Fees and Suits Valuation Act, 1959 applied to appeals under Section 260A of the Income-tax Act, 1961 filed by an assessee, where the assessment order was made before the commencement of Section 52A. (ii) Whether, in appeals under Section 260A of the Income-tax Act, 1961 filed by the Revenue, the relevant date for determining court fee was the date on which the appellate authority reversed or negatived the assessment order.

Issue (i): Whether Section 52A of the Kerala Court Fees and Suits Valuation Act, 1959 applied to appeals under Section 260A of the Income-tax Act, 1961 filed by an assessee, where the assessment order was made before the commencement of Section 52A.

Analysis: The right of appeal is a vested substantive right accruing when the lis reaches the stage fixed by law. A later enactment enhancing the court fee burden does not take away that right retrospectively unless such intention is expressed expressly or by necessary intendment. Section 260A initially carried a fixed court fee provision, which was later omitted, after which fee became payable under the State Act. Section 52A of the Kerala Act was introduced only from 06.03.2003 and was not made retrospective. Therefore, for assessee appeals, the applicable fee regime is the one governing the date of assessment order if that date precedes 06.03.2003.

Conclusion: Section 52A did not apply to assessee appeals arising from assessment orders made before 06.03.2003, and the court fee was to be computed under the law then applicable.

Issue (ii): Whether, in appeals under Section 260A of the Income-tax Act, 1961 filed by the Revenue, the relevant date for determining court fee was the date on which the appellate authority reversed or negatived the assessment order.

Analysis: In Revenue appeals, the accrual of the right to appeal is linked to the date on which the appellate authority sets aside or negatives the assessment. That date, not the later filing date of the appeal, governs the court fee position. If that date is prior to 06.03.2003, the enhanced fee under Section 52A cannot be insisted upon.

Conclusion: The relevant date in Revenue appeals was the date of the appellate authority's adverse order, and Section 52A did not govern where that date was before 06.03.2003.

Final Conclusion: The State's contrary interpretation was set aside, and the court fee liability in Section 260A appeals was tied to the legally relevant pre-Section 52A dates for both assessee and Revenue appeals.

Ratio Decidendi: A vested right of appeal, including the fee regime attached to it, cannot be made more onerous by a subsequent statute unless the statute expressly or by necessary implication operates retrospectively.

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