TaxTMI 
TaxTMI 
2024 (7) TMI 1145
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....e was involved, all the appeals were considered and decided by the ITAT by a consolidated order dated 31-8-2004 by which the appeals preferred by the assessee were partly allowed whereas the appeal preferred by the Revenue was dismissed. Against the order passed by the ITAT, the Revenue preferred these appeals and the assessee has preferred the cross appeal. 2. Since all the appeals are arising out of same order dated 31-8-2004 passed by the ITAT they are being heard and decided together by this common judgment along with cross-objection. 3. In order to avoid repetition of facts and for the sake of convenience, the documents annexed in ITA No.6 of 2005 are being referred : 4. The facts of the case are that : a) The assessment year pertains to 1988-89, 1989-90, 1990-91, 1991-92 and 1992-93. Initially Surendra Kumar Jain (since deceased) filed the aforesaid returns; the same were accepted; and intimations were issued under Section 143 (1) (a) of the Income Tax Act, 1961 (for brevity 'the IT Act'). b) Original assessee derived income from salary as Managing Director of M/s Bhilai Engineering Corporation Limited, share profits from firm in which he is partner....
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....58,94,870=00 1990-91 24,35,06,300=00 1991-92 23,69,02,210=00 1992-93 5,94,40,840=00 g) Being aggrieved by the assessment order the assessee preferred an appeal before the CIT (A) on various grounds including the validity of reassessment proceedings. The CIT (A) after hearing the parties vide its order upheld the order passed by the AO under Section 143 (3) read with Section 147 of the IT Act for all the years under consideration except allowing the relief to the assessee on the issue relating to the levy of interest under Section 139 (8) and Section 217 of the A.Y. 1988-89. h) Feeling aggrieved by the order of the CIT (A) the assessee preferred appeal for the assessment year under consideration and the Revenue had also preferred cross appeal for AY 1988-89 bearing ITA No.585/Nag/97. The ITAT after going the facts and material available on record held that the assessment was completed by the AO on the dictates of higher authorities without application of mind whereas the ITAT also dismissed the contention of the assessee for initiation of reassessment proceeding and held that reassessment was not done by the AO as per the directions/ dictates of t....
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....g the course of search conducted by them in connection with transfer of money to India through Hawala, therefore, unless such information received at higher end or transmitted and coordination is maintained the Department cannot function and in the instant case the similar things happened. (iii) Learned counsel would also submit that the Supreme Court in the matter of Vineet Narain & Others v Union of India & Another WP(Cri.) No.340-343 of 1993 (dated 30-1-1996) had directed the Government agencies to fairly, properly and fully investigate into every accusation against every person and all the agencies were directed to timely report to the Supreme Court regarding the progress achieved in the matter of investigation, therefore, the entire proceeding of the CBI and the Income Tax Department was being monitored by the Supreme Court. Under the circumstances the AO, who was taking cognizance of the development has to gather information and was required to be in liasioning with the officers including higher one. Thus, the correspondence of coordination in between the officers were made and no extraneous inference or apprehension is required to be drawn and the assessment cannot be sai....
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.... In the instant case, admittedly, the AO had the entire jurisdiction, therefore, the question of law is required to be answered in favour of the Revenue. (vii) To buttress his contention, learned counsel would place reliance upon the decision rendered by the Supreme Court in the matter of Omar Salay Mohamed Sait v Commissioner of Income Tax (1959) 37 ITR 151 (SC), decision rendered by the High Court of Allahabad in the matter of S.K. Gupta & Co. v Income Tax & Anr. (2001) 165 CTR (All) 565 = (2000) 246 ITR 560 (All) and the High Court of Bombay in the matter of Commissioner of Income Tax v Bharatkumar Modi & Ors. (2000) 164 CTR (Bom) 273 = (2000) 246 ITR 693 (Bom) = (2000) 113 TAXMAN 386 (Bom) and would submit that when the finding of fact can be interfered when it is based on conjectures and surmises or improper rejection of relevant evidence, is liable to be interfered with in reference jurisdiction. Further, the High Court of Allahabad in S.K. Gupta & Co. (supra) would submit that when the AO had reason to believe under Section 147 that any income chargeable to tax and has escaped in any assessment year he may assess or reassess such income and AO should have the reason to be....
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....e aforesaid letter dated 20-3-1995, AO was also directed to start reassessment proceeding, therefore, there was no option left with the AO. On the contrary, the AO, who is the quasi judicial authority and is required to act independently and judiciously, could not have done so. (C) Learned counsel would submit that the return was filed under protest in June, 1995 and the entire denial was made with respect to any action or nexus with the seized documents. Thereafter, the Investigation Department at Delhi illegally usurped the power over the entire assessment proceedings to the complete exclusion of the AO, who was placed at Bhilai, Durg and it is the Delhi Investigation Department recorded various statements on which the reassessment was thought for and ordered. He would also submit that in terms of Section 132A (3) read with Section 132 (9A) of the IT Act, the DDIT (Inv.) was the requisition officer and was required to transfer the documents requisitioned to the AO within the statutory period of 15 days and subsequent to it the authority was seized to exercise its jurisdiction. (D) Reference is made to the decision rendered by the Supreme Court in the matter of CIT v K.V. Kr....
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....y or non-relevancy of such paper. He would submit that at the instructions of superior officers of the CIT (A), the reopening was made and even the reasons were worked out and the note sheet would show, which is apparent from the order of the ITAT, that the AO did not form any opinion to reopen and the action of reassessment was suggested. (G) Learned counsel would submit that as per Section 153A of the IT Act (as then prevailing was) the reassessment should have been completed within two years and in the instant case the assessment year 1988-89 to 1992-93 continuously and notice under Section 148 was issued on 30-3-1995 so the proceedings of assessment further would be barred after March, 1997. Therefore, as on today this Court cannot lift the bar of limitation by ordering de novo reassessment afresh. He would submit that the Tribunal having held the initiation of reassessment was valid is contradictory inasmuch as the original inception of reassessment was bad in law, therefore, this cannot cure the defect on behalf of the Revenue and accordingly question No.3 should be answered in favour of the assessee. (H) In support of his contention, learned counsel would place relianc....
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.... at others premises, not the assessee and certain documents were found at the place of one J.K. Jain. This led to investigation and filing of charge sheet in criminal cases. Few of documents so seized during search and seizure by the CBI were later on handed over to the Income Tax Department at Delhi. The Revenue after receiving documents, thought about reassessment at the relevant time. The AO was at Bhilai, not at New Delhi, so whether the AO had applied its mind independently to reassess ? The correspondence which has been referred to by the ITAT in its order reflect that the Government agencies were under the impression that money has been swindled, which led to criminal cases. All these state of affairs remained stagnant and the Income Tax Department did not put up hammer on it. Subsequently, a PIL was filed by a journalist Vineet Narain after which the issue again caught fire and all issues came to fore. 10. In respect of subsequent criminal cases so filed the entire issue of criminality and involvement of people was challenged and were adjudicated upon. On one of such issue the Supreme Court in the matter of Central Bureau of Investigation v V.C. Shukla & Others (1998) 3 ....
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....gical final action in accordance with law. 13. Section 132A (3) of the IT Act would purport that where any books of account, other documents or assets have been delivered to the requisitioning officer, the provisions of sub-sections (4-A) to (14) (both inclusive) of Section 132 and Section 132B shall, so far as may be, apply as if such books of account, other documents or assets had been seized under sub-section (1) of Section 132 by the requisitioning officer from the custody of the person referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1) of Section 132A and as if for the words "the authorised officer" occurring in any of the aforesaid sub-sections (4-A) to (14), the words "the requisitioning officer" were substituted. 14. Section 132 (9A) of the IT Act speaks that where the authorised officer has no jurisdiction over the person referred i.e. assessee herein all the goods seized shall be handed over by the authorised officer to the Assessing Officer having jurisdiction over such person within a period of fifteen days (as then prevailing was) from the date on which the last of the authorisations for search was executed. 15. For b....
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....f the IT Act ? 19. Perusal of the order of the ITAT would show that during the course of hearing before the ITAT the correspondence between the AO and the higher authorities including the DDIT (Inv.), New Delhi, and CIT, Jabalpur, who was the administrative controller of the AO of Bhilai, prior to date of initiation of reassessment proceeding were called for. The said proceeding was not provided to the assessee as it was claimed to be confidential, however, before the ITAT when the correspondence was placed they were allowed to be inspected by the assessee. 20. Perusal of the record and order would show that the documents received by the AO from the DDIT (Inv.), New Delhi, including the documents seized from J.K. Jain, report of CBI, appraisal report ADIT, New Delhi, was not provided to the assessee and according to the order of the ITAT, the department filed copies of such entire material along with factual clarification in writing. 21. The ITAT while formulating whether the AO acted independently or at the behest of his superiors or at the dictation/ direction is essentially a question of fact. The Supreme Court in the matter of Sirpur Paper Mill Ltd. (surpa) while deali....
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....ner in exercise of his quasi-judicial function. Such an interpretation would be plainly contrary to the scheme of the Act and the nature of the power conferred upon the authorities invested with quasi-judicial power. x x x x 11) It is unnecessary to refer to any more entries made in the case sheet maintained by the Commissioner of Wealth Tax. From the inception of the proceedings the Commissioner of Wealth Tax put himself in communication with the Board of Central Revenue and sought instructions from that authority as to how the revision applications filed before him should be decided. He exercised no independent judgment. The Commissioner also recorded that the case did not require a personal hearing but since the Director of the Company had made a personal request for an interview it was "thought desirable" from "the point of view of public relations to give an interview." Here also the Commissioner misconceived the nature and extent of his jurisdiction. 12) Counsel appearing on behalf of the Commissioner of Wealth Tax in these appeals has not attempted to support the order under appeal. We set aside the order passed by the Commissioner and direct that ....
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....report of the CBI set out in Set IX identify the person in whose hands the proceedings under I.T. and G.T. Act had to be initiated, specify years where such income/gift would be taxable and work out reasons for reopening the assessment. You are also requested to please identify the items of root payments from the seized material which can be referred to regular books of account of BECO or other sister concerns of BECO so that quantum of receipt/payment can be cross checked and accordingly the seized material can be correctly deciphered. If considered necessary, matter can be discussed with the undersigned. We are also working out the case and we sent you copy of the investigation report at the earliest possible time. DDIT (Inv). 25. The ITAT in its order has also given the account of the documents which were annexed with aforesaid letter. It is pertinent to mention here that these documents were same set of documents which were sent to CIT, Jabalpur by the DDIT (Inv.) on 1.3.95. The set of documents were as follows : i) SET - I - Monthly receipts and payments having pages 1 - 32. ii) SET - II - Containing detailed expenditure in firm and others having pages ....
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.... 28.3.95: Received a phone call from D.G. Shri. G.P. Garg, Delhi. He informed of the (not legible) aspect of the matter. Viz., (a) the reopening of the assessment of Shri S.K. Jain, B.R. Jain and BEC (b) submission of the report to settlement commission (not legible) appraising them the factual position and (c) Submission of detailed report to CBDT through CCIT Bhopal, by week end. 28.3.95: Received phone call from CIT Jabalpur who informed of his talk with Shri SP Garg, D.G. Delhi, he has been informed of the action to be taken. He expressed his satisfaction about the progress so far. 30.3.95: Recorded the detailed reasons u/s.148(2), 17(1) & 16(1) of IT/WT/GT Act for issue of notices under various D. Taxes. 5.4.95: Received a phone call from CIT/DDIT (Inv.) informing the visit of Shri. D.C. Agarwal. It is informed by Shri Abhey Damble, ACIT that in the case Action Taken Report (ATR) is to be submitted to the (not legible) by the CIT and the said report to be submitted to the CIT showing action taken on the following aspects: (a) reopening of the cases-reasons to work out; (b) submission of the re....
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....ould not entertain an application for grant of permit nor could issue any order thereupon. Even any authority under the Act, including the appellate authority cannot issue any direction, except when the matter comes up before it under the statute. 31. The Supreme Court finally held that unwanted interference in the working of the statutory authority violates the constitutional scheme. The Court in para 20 held as under : 20. Factual matrix, as indicated hereinbefore, clearly goes to show that the fourth respondent filed the application before the Chief Minister straightaway. Office of the Chief Minister communicated the order of the Chief Minister, not once but twice. Respondent 2 acted thereupon. It advised the Regional Transport Authority to proceed, after obtaining a proper application from Respondent 4 in that behalf. This itself goes to show that prior thereto no proper application was filed before the Regional Transport Authority. Such an interference on the part of any authority upon whom the Act does not confer any jurisdiction, is wholly unwarranted in law. It violates the constitutional scheme. It interferes with the independent functioning of a quasi-judicial....
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....not interfere with the rights of others unless they can point to some specific provision of law, which authorises their acts. A Constitution Bench of this Court in Bishan Das v. State of Punjab [AIR 1961 SC 1570 : (1962) 2 SCR 69] held that the State or its executive officers did not have any right to take law into their own hands and remove a person by an executive order. The Court further observed: (SCR p. 80) "Before we part with this case, we feel it our duty to say that executive action taken in this case by the State and its officers is destructive of the basic principle of the rule of law." 36. However it is equally true that when the authority is vested with the power it has duty to exercise it and adherence to said rule is important facet to administration of justice. The Revenue raised the argument that effective functioning of the revenue department requires coordination monitoring and superintendence. However what required to be seen is that General power of superintendence must be distinguished from the interference in the adjudication process. The authority in which a discretion is vested can be compelled to exercise that discretion, but not to exercise it....
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....e Supreme Court in the matter of Sirpur Paper Mills Ltd. (supra) highlighted that Wealth Commissioner following directions of Board of Revenue is "surrendered his judgment to the directions of the Board of Revenue" the Supreme Court has highlighted thus at para 5 : 5. The Commissioner appears, in our judgment, to have wholly misapprehended the true character of the jurisdiction with which he is by the Act entrusted and has surrendered his judgment to the directions of the Board of Revenue. The order sheet of the Commissioner (at pp. 10-36 of the printed Paper-Book) bears eloquent testimony to the manner in which the Commissioner has merely carried out the directions of the Board of Revenue, instead of deciding the case according to his own judgment. 38. The Tribunal in its order after considering the material available on records come to a wrong finding that the time gap the AO revived information and reasons recorded to reassess would not be fatal and despite the fact no reasons were recorded or evidence is available, which cannot be stated that reassessment was an independent decision. This finding of the ITAT fall short of the principles laid down when the events of ....
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....e neutral and any one who is not neutral shall ceased to be adjudicator then only the principles of natural justice can be given true effect. 45. That, in the common law adherence to the principles of natural justice has been given utmost importance as it is a requirement of the adjudication that it must be just reasonable and fair to all the parties who comes for the adjudication. Requirement of neutrality in adjudication is requirement of due process. Biased decision maker constitutionally unacceptable but our system of the rule against bias is also aspect of Natural Justice which is based upon the maxim Nemo judex in sua causais ("no-one is a judge in his own cause which also give rise to the to the principle that justice must not only be done, but it must also be seen to be done. Lord Hewart, C.J. in R. v. Sussex JJ., ex p McCarthy [(1924) 1 KB 256], KB (p. 259) wherein he said: "... it is not merely of some importance but is of fundamental importance that justice should not only be done, but should manifestly and undoubtedly be seen to be done." 46. The classic case which falls for consideration before the English Courts was Dimes v. Grand Junction Canal (1852) ....
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....oduced a discrepancy between the Convention and the common law in ensuring impartial decision-making. In addition it disregarded the hallowed principle that justice must be seen to be done. The House of Lords, in recognition of this discrepancy, has now made 'a modest adjustment to the real danger test and ensured consistency between the Convention and the common law. The case concerned a leading counsel, a recorder, who had been appointed by the Lord Chancellor to serve as a part-time judge in the Employment Appeal Tribunal. He was briefed to appear before an EAT which included lay members who had previously sat with him in his role as judge. The test of bias laid down was 'whether the fair-minded and informed observer, having considered the facts, would conclude that there was a real possibility that the tribunal was biased'. Applying this test the House of Lords concluded that it was reasonably possible that that observer might consider that the recorder's submissions would carry particular weight, perhaps subconsciously, with the lay members with whom he had sat in the past. 48. Position of law is more or less similar in India the decision of the Supreme Cour....
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....ether a reasonable intelligent man, fully apprised of all the circumstances, would feel a serious apprehension of bias. The same principle has also been accepted by this Court in Manak Lal v. Dr Prem Chand [1957 SCR 575 : AIR 1957 SC 425]. This Court has laid down that the test is not whether in fact, a bias has affected the judgment; the test always is and must be whether a litigant could reasonably apprehend that a bias attributable to a member of the tribunal might have operated against him in the final decision of the tribunal. It is in this sense that it is often said that justice must not only be done but must also appear to be done. 50. The Supreme Court in the matter of P.D. Dinakaran (1) v. Judges Inquiry Committee (2011) 8 SCC 380, (2011) 8 SCC 380 : held thus : 65. In G. Sarana (Dr.) v. University of Lucknow [(1976) 3 SCC 585 : 1976 SCC (L&S) 474] the Court referred to the judgments in A.K. Kraipak v. Union of India [(1969) 2 SCC 262] , S. Parthasarathi v. State of A.P. [(1974) 3 SCC 459 : 1973 SCC (L&S) 580] and observed: (G. Sarana case [(1976) 3 SCC 585 : 1976 SCC (L&S) 474], SCC p. 590, para 11) "11. ... the real question is not whether a member ....
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....the Commissioner of Income-tax used to hear appeals while he was a party to the departmental proceedings also. Till 1960, the Central Board of Revenue too had power to hear appeals in estate duty matters against the order passed by the Controller of Estate Duty in all cases wherein the deaths occurred before 1st July, 1960. The appellate functions of the Central Board of Revenue which was also the controlling estate duty authority were criticized by the Taxation Enquiry Commission which, however, recommended no change. The Commission thought that the provisions laid down, that in his appellate functions, the Appellate Assistant Commissioner should be free from the control of the Board, and the latter should not give him any order, instruction, or direction were not sufficient, because, he could not be expected to get over the compulsion of being a part of the Department, as for his promotion he must be dependent on the Board. The Commission added as follows:- We think that the experiment begun in 1939 should be carried forward and the Appellate Assistant Commissioners should be removed from the control of the Commissioners and the Central Board of Revenue. Their l....
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....n which is impermissible in law. ii) General power of superintendence must be distinguished from the interference in the adjudication process. The authority in which a discretion is vested can be compelled to exercise that discretion, but not to exercise it in any particular manner. iii) The Court must be mindful of the fact that the adjudication process must be free from any kind of bias. The true test of bias is not whether the judge is actually biased or not, but whether there is a real danger of bias from the view point of fair-minded and informed observer (N.K. Bajpai Case) 55. The common thread which passes through in all these questions is whether the AO has passed the final order in reassessment on the dictates/directions of the superior authority. The ITAT in its judgment has arrived to the finding considering various material available on record that the AO has passed the order against the assessee on the dictates of his superiors. 56. Learned counsel for the Revenue though argued that since the matter regarding the Jain dairy was pending before the Supreme Court and as the Supreme Court has passed some specific directions in the Vineet Narain case....
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....ent case instructed me at Jabalpur that the case is not required to further proceeded with till further instructions. 23.2.96: Shri D.C. Agrawal, Addl. DIT, Delhi informed that the case is to be proceeded with and assessment is to be framed as early as possible. He opined that there appears to be some communication gap in the message conveyed by Hon'ble CIT, Jabalpur. 27.2.96: Had a telephonic discussion with Hon'ble CIT who also communicated that the assessments for IT ad WT are to be completed. Only the assessments under the GT are to be kept pending. Accordingly a detailed reply to assessee's letter dated 5.2.96 is issued on the basis of draft letter received from Shri D.C. Agrawal, through CIT/Jabalpur through fax. 27.2.96: A sealed cover addressed to Shri D.C. Agrwal, Addl. DIT was handed over to Shri H.L. Vaddadi, ITI for delivering the same by speed post at Raipur, Head Post Office. The sealed cover contains the replies to Shri S.K. Jain's letter (reply to notice) dt. 5.2.96 along with acknowledgment slip which has been duly sealed and signed. 28.2.96: Shri H.L. Vaddadi, ITI informed that the sealed envelope containing the ....
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....as 24 criminal cases, list of which has been made out and filed along with the letters as also he has been served upon 8 show cause notices by the Enforcement Directorate on account of contravention of section 8, 9 & 14 of FERA. 9.3.96: Shri D.C. Agrawal, Addl. DIT (inv.) telephonically contacted at his residence No. and apprised of the contents of the letters filed by the assessee on 8.3.96. He comminuted that the copies of these letters be forwarded to him by FAX. 11.3.96: As desired, the copies of assessee's reply have been transmitted through FAX to the Directorate of Inspection (Investigation) along with the covering letter dated 10.3.1996. 20.3.96: Shri D.C. Agrawal, Addi. DIT (Inv.), Delhi telephonically informed that the case cannot be further prolonged on the basis of contentions raised by the assessee in his letters dated 7.3.96 and 8.3.96. He further communicated that the undersigned should camp at Delhi for the completion of the assessment orders, so that the assessment orders along with the demand notice, challan etc. be served upon the assessee in the first week of April, 96 as desired by the DG(Inv.), since the Hon'ble Supreme Court....
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.... the Special Court of Shri V.B.Gupta at Delhi. The contents of the letter have also been read over to Shri D.C. Agrawal, Addl. DIT (Inv.), Delhi over telephone as desired by him . 4.4.96: The assessee filed letter dated 2.4.96 wherein by and large the contents of the letters filed earlier i.e. on 7th, 8th & 25th March, 96 have been reiterated. 8.4.96: Proceeded to Delhi for finalizing the assessment order as per directions of the Hon'ble DI/DG, New Delhi. 16.4.96: Order passed u/s 143 (3) r.w.s. 147. Copy of the order along with D.N. & Ch. Etc. have been handed over to Shri D.C. Agrawal for affecting the service upon the assessee. 61. The records of the proceedings clearly shows that the AO was taking instructions on each and every hearing and dictates was clearly given to him. 62. That, even more interesting account has been given in the letter dated 30.01.96 which was written to the Commissioner of Income Tax, Central Revenue Building, Napier Town Jabalpur same is reproduced herein : To, The Commissioner of Income Tax, Central Revenue Building, Napier Town, Jabalpur (MP). Attention: Shri Abhay Damle, ACIT(Hqrs.). Sir, ....
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....ious issues involved and investigated into were incorporated in detail including the detailed reasons for establishing the fact that the figures noted in the diary and allied documents were in the code of 'lakhs'. The rough sketch of the questionnaire was gone through by the DIT (Inv.) who instructed that the questionnaire should be prepared separately for all the assessment years by recapitulating the facts and reasons as incorporated in the notices issued by the Addl. DIT (Inv.), Delhi to the concerned assessee. After returning from Delhi, the said exercise was carried out and the notices weré prepared both under Income-tax and Wealth-tax and submitted to the DIT on 8.1.96 and 9.1.96, so that the service could be effected on or before 10.1.96, on which date the Hon'ble Supreme Court had fixed the case for hearing. The notices issued for assessment years 1988-89 to 92-93 under section 142 (1) and 143 (2) of Income-tax Act, 1961 alongwith detailed questionnaire as also statutory notice u/s 16 (2) alongwith detailed questionnaire under the Wealth-tax Act, 1957 have been kept in the Paper Book prepared for submission to the Hon'ble Settlement Commission, a copy....
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....t some changes here and there. The letter dated 7th March, 1996 mentions the assessee's view point in generality and appears to have been prepared in haste just to seek the adjournment of the case. The letter dated 8th March, 96 brings out some specific legal objections based on the authorities cited therein. In this letter following three points have been made out for seeking the adjournment of one month's time:- That the assessee be supplied with or allowed to have an access to the original documents on the basis of which the assessment is proposed to be made; The assessee requested for allowing him to cross examine the various witnesses on the testimony of which the inferences in the matter of making the assessment have been drawn; It is emphasized upon by the assessee that the criminal cases which he is facing as per the list appended with the reply must take precedence over the Civil proceeding i.e. assessment proceedings under IT & WT. Under these circumstances I solicit the valuable guidance of the higher authorities viz. DIT/DG(Inv) in the matter so that any legal infirmity in the assessment order be properly taken care of. ....
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....duty to act judicially and independently and its judgment cannot be controlled by the superior authority. The Supreme Court in Orient Paper Mills Ltd. v. Union of India (1970) 3 SCC 76, held thus : 5. According to the learned Attorney-General the assessment proceedings are not of a quasi-judicial nature nor is the Assessing authority a quasi-judicial authority. We are unable to agree. It is apparent from the judgment referred to above and numerous other decisions of this Court delivered in respect of various taxation laws that the Assessing authorities exercise quasi-judicial functions and they have duty cast on them to act in a judicial and independent manner. If their judgment is controlled by the directions given by the Collector it cannot be said to be their independent judgment in any sense of the word. An appeal then to the Collector becomes an empty formality. In the previous decision of this Court mentioned above the appeal and the revision had been rejected by the Collector and the Central Government on the ground that a direction had been issued by the Central Board of Revenue to the effect that the paper in question be treated as belonging to a particular classi....
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....icer for fresh assessment. Since the order of initiation is declared void therefore the question does not arise for consideration. 73. Even otherwise the court cannot condone the delay of the proceedings which is not before it as limitation for framing of reassessment order section 147/143 (3) which, in terms of section 153 of the Act (as then applicable) lapsed on 31.03.1997. 74. The Supreme Court in Popat Bahiru Govardhane v. Land Acquisition Officer (2013) 10 SCC 765, held thus : 16. It is a settled legal proposition that law of limitation may harshly affect a particular party but it has to be applied with all its rigour when the statute so prescribes. The court has no power to extend the period of limitation on equitable grounds. The statutory provision may cause hardship or inconvenience to a particular party but the court has no choice but to enforce it giving full effect to the same. The legal maxim dura lex sed lex which means "the law is hard but it is the law", stands attracted in such a situation. It has consistently been held that, "inconvenience is not" a decisive factor to be considered while interpreting a statute. "A result flowing from a statutory pr....