Preservation of accrued appeal rights under repealed tax law keeps a pending Supreme Court leave application maintainable.

A pending income-tax reference under the repealed 1922 Act was treated as continuing proceedings by virtue of section 297(2)(c) of the Income-tax Act, 1961, so the later Supreme Court appeal and leave application were regarded as part of the same preserved reference. The accrued right of appeal under section 66A(2) of the 1922 Act was also preserved by section 6 of the General Clauses Act, 1897, because the 1961 Act did not clearly show a contrary intention. The Income-tax (Removal of Difficulties) Order, 1962 was read consistently with that saving. Accordingly, the application for leave to appeal remained maintainable and the certificate was rightly granted.

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Issues: Whether an application for leave to appeal to the Supreme Court remained maintainable after the commencement of the Income-tax Act, 1961, in respect of a reference pending on that date and decided thereafter under the repealed 1922 Act.

Analysis: Section 297(2)(c) of the Income-tax Act, 1961 saved pending proceedings and required them to be continued and disposed of as if the 1961 Act had not been passed. The pending reference was therefore treated as part of the old statutory proceedings, and the subsequent appeal to the Supreme Court, together with the application for leave to appeal, was regarded as a continuation of that reference. Independently, the right of appeal available under section 66A(2) of the Indian Income-tax Act, 1922 was a right accrued before repeal and was preserved by section 6 of the General Clauses Act, 1897, there being no clear contrary intention in the 1961 Act. The Income-tax (Removal of Difficulties) Order, 1962 was also read as consistent with that saving.

Conclusion: The application for leave to appeal was maintainable and the certificate was rightly granted.

Ratio Decidendi: Where a pending income-tax reference is saved by the repealing statute, the right and procedure for pursuing a Supreme Court appeal arising out of that reference continue under the repealed law, and the accrued right of appeal is preserved unless a contrary legislative intention is clearly expressed.

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