TMI Blog1980 (12) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal was correct in holding that an order under section 2(p) of the Agri. Income-tax Act, 1950, was not an appealable order ? b. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in its view that a person can deny his liability to be assessed only when an order of assessment is passed against him, especially in view of the definition of the term 'assessee' as contained in the Agri. Income-tax Act, 1950 ? " The reference has been made at the instance of the assessee. She is director of a company called M/s. Chendakkal Plantations (P.) Ltd., Kuzhani, Alathur Taluk. On March 13, 1978, the Agri. ITO, Alathur, issued a notice to the assessee proposing to treat her as the principal officer of the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st which the assessee had appealed before the AAC was not one passed under s. 25 of the Act and it was also not an order passed under s. 21 of the Act. In the view of the Tribunal, the order in question was one passed under cl. (p) of s. 2 of the Act and no appeal was provided by the statute against such an order. Dealing with the contention of the assessee that s. 31 confers on an assessee a right to file an appeal in a case where there is a denial by him of liability to be assessed, the Tribunal held that the denial of liability can constitute only a ground for challenging the order of assessment in an appeal which is provided for by s. 31 against the order of assessment. Accordingly, the Tribunal dismissed the second appeal filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t have been used as words qualifying the expression " assessee ". The right of appeal conferred by the section is " against the assessment or against such order ". Hence an appeal can be filed by an assessee who denies his liability to be assessed under the Act either against the order of assessment made against him or against orders coming within the description of " such order " contained in the last portion of the section. The expression " such order " used in the last portion of sub-s. (1) obviously denotes orders under ss. 19, 20, 21, 25, 29 and 41 which have been specifically referred to in the earlier part of the said sub-section. Thus, the position that emerges on a correct interpretation of the section as a whole is that appeals ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any person who was member of such firm at the time of its discontinuance or, in the case of company, on the principal officer thereof, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 17 and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that subsection." This sub-section merely empowers the ITO to issue a notice to the principal officer of a company. It does not contemplate any adjudication being conducted into the liability of a person to be assessed or the passing of an order declaring any person to be liable to be assessed under the Act. This is merely a procedural provision laying down the procedure ..... X X X X Extracts X X X X X X X X Extracts X X X X
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