1974 (5) TMI 14

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....come-tax Officer passed an assessment order under section 23(4) of the Income-tax Act as the assessee had failed to comply with a certain notice. On 24th September, 1957, the assessee filed an application under section 27 praying for cancellation of the ex parte assessment order. On September 25, 1957, the assessee filed an appeal against the original assessment order. On January 21, 1967, the Inc....

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....and place he had no jurisdiction to dispose of the appeal. The above order was, therefore, bad in law. It was also urged before the Tribunal that the assessee had challenged the assessment order on grounds in addition to those taken in the application under section 27, and for this reason also the appeal could not be said to have become infructuous. The Tribunal did not record any finding on this ....

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....pened the entire assessment proceedings. No part of the original assessment order remained in force thereafter. Section 31 of the Indian Income-tax Act, 1922, provides as follows : " (1) The Appellate Assistant Commissioner shall fix a day and place for the hearing of the appeal, and may, from time to time adjourn the hearing. (2) The Appellate Assistant Commissioner may, before disposing....

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....has to be disposed of on its merits. But, if an extraordinary situation arises in which on all hands it is admitted that by the disappearance of the assessment order which was the subject-matter of appeal, the appeal cannot possibly be disposed of on merits, no matter what grounds have been taken in the memo of appeal, then in such a situation the procedure mentioned in section 31 will become inap....