Retrospective bar on the right of appeal rejected where assessment proceedings began before the statutory condition took effect.

A statutory condition restricting the right of appeal was held not to operate retrospectively against assessment proceedings already initiated before its commencement unless the legislation expressly so provides. The right of appeal was treated as vesting when assessment proceedings began, not when tax was later quantified, so section 249(4) could not bar the appeal in this case. The summary dismissal of the appeal in limine was set aside, and the matter was remitted for the appellate authority to verify whether notice under section 143(2) had been served before 1 October 1975 and then decide the appeal according to law.

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Issues: Whether the restriction in section 249(4) of the Income-tax Act, 1961 applied to an appeal arising from assessment proceedings initiated before that provision came into force, and whether the summary dismissal of the appeal in limine was sustainable.

Analysis: The right of appeal was treated as vesting on the date of initiation of the assessment proceedings, not on the later date when tax liability was finally quantified. Section 249(4) was regarded as a substantive provision imposing a condition on the right of appeal, and in the absence of express retrospective language it could not govern assessment proceedings already commenced before its effective date. On the facts, the question whether the notice under section 143(2) had been served before 1 October 1975 required verification by the appellate authority.

Conclusion: Section 249(4) could not be applied retrospectively to the present appeal. The order dismissing the appeal in limine was set aside and the matter was remitted to the appellate authority to verify the date of service of notice under section 143(2) and then decide the appeal in accordance with law.

Final Conclusion: The assessee succeeded on the retrospectivity issue, but the appeal was restored for fresh consideration on the factual question of the notice date.

Ratio Decidendi: A statutory condition restricting the right of appeal does not apply retrospectively to assessment proceedings initiated before the provision came into force unless the legislation expressly so provides.

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