Successor Commissioner proceedings may continue without fresh hearing where no clear rehearing request was made under section 5(7C).

Section 5(7C) of the Indian Income-tax Act, 1922 permits a succeeding income-tax authority to continue a pending proceeding from the stage left by the predecessor, while preserving an assessee's right to seek reopening or rehearing. On the facts, the assessee did not clearly request a fresh personal hearing before the successor Commissioner, but sought only a short adjournment to produce further evidence. The challenge on absence of a fresh hearing was also not raised in the same form before the Tribunal. The Court held that the section 33B order was not vitiated by non-compliance with section 5(7C), and the issue was answered in favour of the Revenue.

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Issues: Whether the Commissioner's order under section 33B of the Indian Income-tax Act, 1922 was invalid for alleged non-compliance with section 5(7C) of that Act, particularly on the ground that the assessee was not given a fresh hearing by the succeeding Commissioner.

Analysis: The question was confined to the effect of section 5(7C), which permits a succeeding income-tax authority to continue a pending proceeding from the stage left by the predecessor and preserves the assessee's right to demand reopening or rehearing. On the facts, the assessee had not sought a personal rehearing before the successor Commissioner, but had asked for a short adjournment to furnish evidence. The challenge based on absence of a fresh hearing had not been raised in the same form before the Tribunal, and in any event the statutory provision did not require the proceedings under section 33B to be extended beyond the limitation applicable to such an order. The Court treated the assessee's request as one for time to produce further evidence rather than a clear invocation of the statutory right to rehearing.

Conclusion: The order under section 33B was not vitiated by non-compliance with section 5(7C); the question was answered in the affirmative and in favour of the Revenue.

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