1956 (4) TMI 71 - HC - Income Tax

Summary

Issues:
1. Interpretation of section 66(1) of the Indian Income Tax Act regarding the timeline for making an application and accompanying fee.
2. Validity of the application made under section 66(1) within the specified timeline.
3. Compliance with the requirement of fee payment under section 66(1) of the Act.
4. Comparison of various cases related to the interpretation of section 66(1) in determining compliance with the statute.

Analysis:
1. The judgment revolves around the interpretation of section 66(1) of the Indian Income Tax Act, which mandates that an application, along with a fee of Rs. 100, must be made within sixty days of receiving notice of an order from the Income Tax Appellate Tribunal. The section requires both the application and fee to be submitted within the specified timeline.

2. In this case, the petitioner received notice of the Tribunal's decision on 24th October, 1950, and attempted to deposit the fee on 22nd December, 1950. However, due to a public holiday, the fee was paid on 23rd December, 1950, within the sixty-day period. The Tribunal received the fee on 26th December, three days beyond the deadline, leading to the dismissal of the application.

3. The court analyzed the requirement of fee payment under section 66(1) and noted that the fee was deposited in the treasury within the limitation period, as permitted by the rules. The rule allowed the fee to be paid in the treasury and the challan to be sent along with the application to the Tribunal, ensuring compliance with the statutory provisions.

4. The judgment compared various cases cited by the parties to distinguish the circumstances of each case concerning compliance with the statute. The court differentiated cases where money was sent by post, leading to delays, from cases where the fee was paid in the treasury within the stipulated timeline, emphasizing the importance of timely payment in the designated manner.

5. Ultimately, the court held that the deposit of the fee in the treasury within the limitation period, along with the timely submission of the application, satisfied the requirements of section 66(1) of the Income Tax Act. Consequently, the court allowed the applications, set aside the Tribunal's order, and directed the Tribunal to decide the petitioner's applications under section 66(1) as per the law, granting costs to the petitioner in each case.