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2015 (2) TMI 678 - HC - Income TaxExtension of the Income-tax Act, 1961, to the State of Sikkim with effect from April 1, 1990 - whether the Sikkim State Income-tax Manual, 1948, stands repealed and the assessments made thereunder for the accounting years 1996-97 to 2004-05 (assessment years 1997-98 to 2005-06) would be without authority of law ? - Held that:- In the instant case, as already held that the Sikkim State Income- tax Manual, 1948, stood repealed after extension of the Income-tax Act, 1961, in the State of Sikkim with effect from April 1, 1990. The petitioner has come claiming its rights as an assessee under the Income-tax Act, 1961. Therefore, any adverse plea like it was not an assessee under this Act or that the Income-tax Act, 1961, was not applicable to the petitioner, being a plea relating to the statute would not operate as estoppel against it and the arguments advanced by the Additional Advocate General is to be rejected. It is, thus, clear from the material placed before us that, firstly, the petitioner approached this court by filing writ petition, saying that the Income- tax Act, 1961, was not applicable, but, the said writ petition was withdrawn with liberty to approach to the competent authority/forum and, thereafter, the petitioner succumbed to the Income-tax authorities under the Income- tax Act, 1961, and presently, various proceedings are pending before the appropriate forums under the said Act. The petitioner has also claimed the refund of ₹ 76,63,655 together with interest till the date of realisation. During the course of arguments, Mr. Pal, on instructions, fairly conceded that the previous interest or the interest pendentelite on the said amount may not be awarded to the petitioner but the State may be directed to refund this amount within the time-frame prescribed by this court. We allow this writ petition and record our findings that after extension of the Income-tax Act, 1961, to the State of Sikkim with effect from April 1,1990, the Sikkim State Income-tax Manual, 1948, stands repealed and the assessments made thereunder for the accounting years 1996-97 to 2004-05 (assessment years 1997-98 to 2005- 06) are without authority of law, non-est and nullity.Consequently, the impugned order dated July 7, 2006 (annexure P6), demand notice dated July 7, 2006 (annexure P7) and the other consequential orders/memos thereto are quashed. The State-respondents are directed to refund a sum of ₹ 76,53,655 to the petitioner within a period of 90 (ninety) days from today, failing which this amount shall carry interest at 6 per cent. per annum from the date commencing after completion of 90 (ninety) days till realization. - Decided in favour of assessee.
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