1975 (7) TMI 7 - HC - Income Tax

Summary

Issues:
1. Maintainability of appeal before the Appellate Controller under the Estate Duty Act, 1953.
2. Interpretation of Section 62 of the Estate Duty Act, 1953 regarding the payment of duty prior to filing an appeal.

Analysis:
The case involves a reference under section 64(1) of the Estate Duty Act, 1953, where the accountable person filed accounts showing a net principal value and paid a partial amount of the demand. Subsequently, a penalty was levied under section 73(5) of the Act. The accountable person's appeal to the Appellate Controller was found not maintainable due to non-payment of the full demand as per the proviso to section 62(1) of the Act. The Tribunal upheld the decision, leading to the reference question on the appeal's maintainability.

The accountable person argued that the repeal of the Indian I.T. Act, 1922, and enactment of the I.T. Act, 1961, eliminated the need to pay duty before appealing. It was contended that the proviso in section 62(1) of the Estate Duty Act, 1953, should be read in light of the new enactment. However, the Court found these contentions lacking substance, emphasizing the independence of the duty payment provision in section 62 from the repealed Indian I.T. Act, 1922. The Court rejected the argument that the proviso was impliedly repealed due to the new enactment.

The Court analyzed the relevant sections of the Estate Duty Act, 1953, including section 62 and section 73(5), to determine the appeal's maintainability. It concluded that the duty payment provision in section 62(1) stands independently and is unaffected by the repeal of the Indian I.T. Act, 1922, or enactment of the I.T. Act, 1961. The Court held that the proviso to section 62(1) still applies, requiring duty payment before filing an appeal. Consequently, the Court answered the reference question affirmatively in favor of the revenue, upholding the decision that the accountable person's appeal before the Appellate Controller was not maintainable. The judgment was delivered by DEB J. and DIPAK KUMAR SEN.