1975 (1) TMI 5 - HC - Income Tax

Summary

Issues:
1. Computation of the period of limitation for filing an appeal under the Indian Income-tax Act, 1922.
2. Interpretation of the expression "ordinarily" in section 30(2) of the Act.
3. Relevance of the date of receipt of the assessment order in determining the starting point of limitation for filing an appeal.
4. Consideration of the instructions provided to Income-tax Officers by the Board of Revenue regarding the supply of assessment orders along with demand notices.

Analysis:
The High Court of Calcutta addressed the issue of the period of limitation for filing an appeal under the Indian Income-tax Act, 1922. The case involved a dispute regarding the starting point of limitation for filing an appeal against an assessment order for the year 1961-62. The assessee received the notice of demand on January 13, 1965, and filed the appeal on February 15, 1965. The Appellate Assistant Commissioner rejected the appeal as filed beyond time, leading to further appeals before the Tribunal and subsequently the High Court.

The primary contention raised by the assessee was that the appeal was not out of time as the assessment order was received on January 16, 1965, thereby extending the period for filing the appeal. The Tribunal, however, held that the period of limitation should be computed from the date of receipt of the notice of demand, not the assessment order. The Court emphasized the statutory right of appeal under section 30(1) of the Act and the 30-day limitation period from the receipt of the notice of demand as per section 30(2).

Regarding the interpretation of the term "ordinarily" in section 30(2), the Court rejected the argument that the time for filing the appeal should start from the receipt of the assessment order, stating that all appeals must be filed within 30 days from the notice of demand. The Court emphasized that special circumstances could be considered by the Appellate Assistant Commissioner for condoning delays in filing appeals.

Furthermore, the Court dismissed the reliance on instructions provided to Income-tax Officers by the Board of Revenue regarding the supply of assessment orders with demand notices. The Court found no merit in the argument that the assessment order must be received along with the demand notice to make it effective, as the relevant rules did not mandate such simultaneous supply.

In conclusion, the High Court ruled in favor of the revenue, affirming that the appeal was time-barred based on the date of receipt of the notice of demand. The judgment highlighted the importance of adhering to statutory timelines for filing appeals and the limited scope of the questions framed by the Court in this case.