TMI Blog1977 (9) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... filed his return of net wealth in time, and after issuing a notice to him under section 18(1)(a) of the Wealth-tax Act (hereinafter referred to as " the Act "), the Wealth-tax Officer levied a penalty of Rs. 2,380. On appeal, the Appellate Assistant Commissioner, while upholding the penalty, reduced the quantum to Rs. 475 only. That lead to the department's appeal to the Tribunal. The income of the assessee during the relevant assessment year 1966-67 was less than Rs. 40,000 for income-tax purposes. The appeal on that ground was taken up for hearing by a single member of the Tribunal constituting a Bench. A preliminary objection was taken by the representative of the department that a single member of the Tribunal cannot hear the appeal tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and accountant members as it thinks fit to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act. Sub-section (2) prescribes the qualifications of a judicial and accountant member. Sub-section (3) thereof further says that the Central Government shall ordinarily appoint a judicial member of the Appellate Tribunal to be the President thereof. Powers and functions exercisable by the Appellate Tribunal are detailed in section 255. This section may be quoted in extenso. " 255. (1) The powers and functions of the Appellate Tribunal may be exercised and discharged by Benches constituted by the President of the Appellate Tribunal from among the members thereof. (2) Subject to the provisions containe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discharge of its functions, including the places at which the Benches shall hold their sittings. (6) The Appellate Tribunal shall, for the purpose of discharging its functions, have all the powers which are vested in the income-tax authorities referred to in section 131, and any proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 and for the purpose of section 196 of the Indian Penal Code (45 of 1860), and the Appellate Tribunal shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898 (5 of 1898)." This single member Bench of the Appellate Tribunal in holding that a single member Bench ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act where the income of the assessee exceeds Rs. 40,000. Sub-section (3) is not applicable to appeals before the Appellate Tribunal filed under section 24 of the Act. The question of the income of the assessee under the Income-tax Act is irrelevant in so far as hearing of an appeal preferred under section 24 of the Act is concerned. " Assessee " as defined in clause (7) of section 2 of the Income-tax Act means " a person by whom any tax or any other sum of money is payable under this Act, and includes-- (a) every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s thereof. Though there is no reference to sub-section (2) of section 255 in section 24(11) of the Act, yet, the Bench to comply with the requirement of section 255(2), must consist of one judicial member and one accountant member. " Bench ", when read in the light of the definition, in the rules and sub-section (2) of section 255, can only mean, a Bench of two members, i.e., one judicial member and one accountant member. Sub-section (3) of section 255 which has been relied upon by the Tribunal has absolutely no relevance in the matter of disposal of appeals preferred under section 24 of the Act. The scope of sub-section (3) of section 255 cannot be enlarged so as to bring in an " assessee " as defined in section 2(c) of the Act and entitle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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