1983 (5) TMI 22

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.... the Commissioner has held that the tax recovery proceeding initiated under the I.T. Act, 1961, for recovery of tax dues on an assessment made under the previous Act, namely, the Indian I.T. Act, 1922, is not maintainable. According to the Commissioner, demand for payment of such tax having been made under the provisions of, the 1922 Act, proceedings for recovery had already started under that Act and notwithstanding the coming into force of the Act of 1961 shortly thereafter, such proceeding under the 1922 Act must continue in view of the provisions of s. 297(2)(c) of the 1961 Act. The Commissioner has, therefore, taken the view that initiation of a proceeding under the 1961 Act for recovery of such dues is not maintainable in law. The ....

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....inued and disposed of as if this Act bad not been passed." In our view, Mr. Pal is right in pointing out that the Commissioner went wrong in two ways. In the first place, be went wrong in holding that the recovery proceeding had already been initiated under the old Act of 1922 by issue of notice of demand thereunder, so that such a proceeding became pending on the date the old Act being repealed, the new Act came into force. Secondly, the Commissioner failed to take note of the fact that cl. (c) speaks of a proceeding by way of appeal, reference or revision pending before any income-tax authority, the Appellate Tribunal or any court which does not include any recovery proceeding under the old Act read with the Public Demands Recovery Act....