Compulsory deposit appeals are maintainable where the statutory scheme and demand notice expressly provide a right of appeal.

The statutory scheme for compulsory deposit under the Compulsory Deposit Scheme (Income Tax Payers) Act, 1974, read with the prescribed demand notice in Form D, expressly permits an appeal against an order determining the deposit payable. That appellate remedy is available through Part A of Chapter XX of the Income-tax Act, 1961 and the prescribed appellate form, and is not confined to penalty orders alone. Accordingly, the appeal before the Appellate Assistant Commissioner was competent and maintainable, and the departmental challenge failed.

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Issues: Whether an appeal lay before the Appellate Assistant Commissioner against an order determining compulsory deposit under the Compulsory Deposit Scheme (Income Tax Payers) Act, 1974.

Analysis: The order under challenge related to compulsory deposit payable by an assessee who was over 70 years of age. The statutory scheme and the prescribed form of demand notice were examined together. The scheme, through the notice in Form D prescribed under section 2(2), expressly informed the assessee that an appeal could be filed against the order determining the compulsory deposit required to be made, by resort to Part A of Chapter XX of the Income-tax Act, 1961 and the prescribed appellate form. This showed that the remedy of appeal was available against an order fixing compulsory deposit, and not confined only to penalty orders.

Conclusion: The appeal before the Appellate Assistant Commissioner was competent and maintainable. The departmental challenge failed.

Final Conclusion: The order in favour of the assessee was upheld, and the departmental appeal, along with the redundant cross-objection, was rejected.

Ratio Decidendi: Where the statutory scheme and the prescribed demand notice expressly confer a right of appeal against an order determining compulsory deposit, that appellate remedy is maintainable notwithstanding a narrower general appeal provision in the parent enactment.

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