Section 73 proceedings cannot be used against assessees covered only by Section 71A, the Supreme Court affirmed.

Show cause notices under Section 73 of the Finance Act, 1994 could not be sustained against assessees whose return-filing obligation arose only under Section 71A. The Tribunal held that the amended Section 73 applied to persons liable to file returns under Section 70, and that the class covered by Section 71A was not brought within Section 73. On that construction, proceedings initiated under Section 73 were not maintainable, and the Supreme Court affirmed that view, with the appeals failing.

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Issues: Whether show cause notices issued under Section 73 of the Finance Act, 1994 were maintainable against assessees whose liability to file return arose only under Section 71A and who were not covered by Section 73.

Analysis: The Tribunal held that the amended Section 73 applied only to assessees liable to file returns under Section 70. The liability of the appellants was specifically cast under Section 71A, and the class of persons covered by Section 71A was not brought within the net of Section 73. On that reasoning, the Tribunal concluded that proceedings initiated under Section 73 could not be sustained.

Conclusion: The show cause notices under Section 73 were not maintainable against the assessees.

Final Conclusion: The appeals failed and the Tribunal's view that Section 73 proceedings could not be invoked for persons liable only under Section 71A was affirmed.

Ratio Decidendi: Where the statute fastens the obligation to file returns under one provision, proceedings under another provision cannot be sustained unless the assessee is brought within the scope of that latter provision.

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