TMI Blog1968 (12) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... y arise out of a common order of the Tribunal in three appeals relating to the assessment years 1943-44 to 1945-46. The assessee is a private limited company with branches at Colombo and other places. On November 5, 1960, the assessee applied for refund of income-tax on the ground of double income-tax relief in respect of the first two years and on August 11, 1961, a similar application was made for refund in respect of the last year. By his order dated March 11, 1961, the Income-tax Officer granted refund for the first two years. He also granted similar relief on August 31, 1961, for the last of the assessment years. The Commissioner of Income-tax thought in proceedings under section 33B that the Income-tax Officer had granted excess relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33B was valid ? 2. Whether the additional rate in section 20(7)(a) of the Ceylon Ordinance of 1932 is Ceylon tax within the meaning of section 45(4)(b) of the Ceylon Ordinance ? 3. Whether the Tribunal was right in holding that the sum of Rs. 5,032 was granted as excessive relief in computing the double income-tax relief for the assessment year 1945-46 and that the Commissioner's order canceling the relief was correct? The answer to these questions will really depend on two main points: " 1. Whether the Commissioner had jurisdiction under section 33B to revise the orders of the Income-tax Officer granting refunds in respect of assessments relating to the three years long before the coming into force of section 33B ? And 2. Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such enquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. (2) No order shall be made under sub-section (1)- (a) to revise an order of reassessment made under the provisions of section 34 ; or (b) after the expiry of two years from the date of the order sought to be revised. (3) Any assessee objecting to an order passed by the Commissioner under sub-section (1) may appeal to the Appellate Tribunal within 60 days of the date on which the order is communi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the assessee does not contend that it is not open to the legislature to depart from that position. We think that effect ought to be given to the clear language of section 33B, namely, " any proceeding under the Act ". As we said, we see no reason whatever, why the applications filed in 1960 and 1961 are not proceedings under the Act within the meaning of the section. On that view, it follows that the Commissioner was well within his powers under section 33B in revising the orders of the Income-tax Officer. That takes us to the second point we formulated earlier and that turns on the interpretation of section 20(7)(a) read with section 45(4)(b)(ii) of the Ceylon Income-tax Ordinance, 1932. Section 49A of the Income-tax Act pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ril, 1937, and for each subsequent year of assessment ending prior to the 1st day of April, 1947, at twice the unit rate increased by an additional rate of 3 per centum......... upon the taxable income for that year of every company ........" Section 45 of the Ordinance deals with relief in cases of double taxation and sub-clause (ii) of clause (b) of sub-section (4) of this section definise Ceylon tax "as meaning, " the amount of such tax before deducting any relief under the 'Ceylon Act' and the following section, but does not include -......... (ii) any additional tax charged under any of the following provisions, that is to say, sub-sections......... (7) ..........." The argument of the assessee is two fold : (1) Section 20(7) v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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