Annuity deposit liability survives omission of enabling provisions where the statutory obligation had already arisen.

Omission of sections 280K, 280R and 280T did not extinguish the annuity deposit scheme or the existing liability created under section 280C of the Income-tax Act, 1961. The chapter was treated as a complete statutory scheme imposing an obligation to make annuity deposits, while section 280K operated only as an auxiliary provision for quantification at assessment. The remaining assessment provisions continued to permit determination of income and credit for statutory deductions, and the omission of the enabling provisions was treated as a repeal for section 6(c) of the General Clauses Act, 1897, so accrued liabilities and rights survived.

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Issues: Whether the omission of sections 280K, 280R and 280T of the Income-tax Act, 1961 with effect from 1 April 1967 rendered the annuity deposit scheme unworkable and deprived the Income-tax Officer of power to determine the annuity deposit payable for earlier assessment years.

Analysis: Chapter XXII-A created a statutory obligation to make annuity deposits under section 280C, which operated like a charging provision and required compliance with the chapter as a whole. The omission of sections 280K, 280R and 280T did not destroy the underlying liability or make the scheme unenforceable. Section 280K was treated as an auxiliary provision enabling the Income-tax Officer to quantify the deposit at assessment, but the power to assess income and give due credit for statutory deductions remained available under the general assessment provisions of the Act. The omission of statutory provisions was treated as a repeal for the purposes of section 6(c) of the General Clauses Act, 1897, so liabilities already incurred continued to survive and could be worked out in later proceedings.

Conclusion: The omission did not take away the power to determine the annuity deposit, and the question was answered in the affirmative, against the assessee and in favour of the Revenue.

Ratio Decidendi: Where a statutory liability has already arisen, the omission of an enabling or enforcement provision does not extinguish that liability if the remaining provisions continue to disclose the legislative obligation and section 6(c) of the General Clauses Act, 1897 preserves accrued rights and liabilities.

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