TMI Blog1988 (6) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... 961, which was inserted by the Taxation Laws (Amendment) Act, 1975, with effect from October 1, 1975 ?" The facts relating to this reference are shortly stated hereafter : For the year under reference, the assessment was framed by the Income-tax Officer under section 143(3) of the Act on July 31, 1975. Against the said order of the Income-tax Officer, the assessee preferred an appeal to the Appellate Assistant Commissioner on October 9, 1975. Meanwhile, sub-section (4) was inserted in section 249 of the, Act by section 59 of the Taxation Laws (Amendment) Act, 1975, with effect from October 1, 1975. Under the said sub-section, an assessee is required to pay the undisputed tax into the Treasury in order to enable him to file an appeal bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat assessment year. If any authority is needed, reference may be made to the Privy Council decision in Maharajah of Pithapuram v. CIT [1945] 13 ITR 221. What applies to assessment would apply to appeals also. We, therefore, feel that the right of the assessee in this regard will have to be determined with reference to the law as it stood on April 1, 1974. Any amendment, specifically so providing, will not apply to the appeal for this year." The short question which calls for determination is whether the provisions contained in section 249(4) regarding payment of the undisputed tax as a condition precedent for the maintainability of an appeal will govern the instant case. The right of appeal is a statutory right. It is a creature of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be regarded as a mere rule of procedure. The provisions of section 249(4) are substantive provisions. It is now well-settled that a statute pertaining to the right of appeal has to be given a liberal construction since it is remedial in nature. A right of appeal will not be restricted or denied unless such construction is unavoidable. An appeal is a continuation of the original proceedings. Although the appeal was preferred on October 9, 1975, the right of the assessee to prefer an appeal accrued when the notice under section 143(2) of the Act was issued or in any event when the assessment was made on July 31, 1975. The right of appeal having accrued to the assessee prior to October 1, 1975, when the amendment came into force, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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