M/S. SOORAJMULL NAGARMULL vs. COMMISSIONER OF INCOME-TAX, CALCUTTA (AND CONNECTED APPEAL)

CIVIL APPEAL No. 238/1961Supreme Court1962 INSC 6219 February 1962Bench: 3 JudgesAuthor: S.K. DAS, M. HIDAYATULLAH, J.C. SHAH5 pages
AI SummaryDismissed

What were the facts?

The assessee and the Commissioner of Income-tax, Calcutta, appealed to the Supreme Court against an order of the Income-tax Appellate Tribunal. Prior to these appeals, both parties had applied to the High Court for orders requiring the Tribunal to state a case under Section 66(2) of the Indian Income-tax Act, 1922. These applications were dismissed by the High Court. The appeals to the Supreme Court were filed with special leave. The assessment years are not explicitly stated, but the appeals relate to orders of the Tribunal passed in I.T.A. Nos. 722 and 7341 of 1954-55. The amount in dispute is not specified.

What did the Supreme Court hold?

The Supreme Court held that when the High Court rejects an application to state a case under Section 66(2) of the Indian Income-tax Act, 1922, the Supreme Court, in the absence of special or exceptional circumstances, will not allow the High Court's order to be bypassed by entertaining a direct appeal against the Tribunal's order. This principle applies even if an appeal has been filed against the High Court's order as well. The Court reasoned that allowing such direct appeals would be inadvisable, especially where it could lead to conflicting decisions, and that the scheme of taxing statutes is to make the High Court's decision on questions of law final, subject to appeal to the Supreme Court. The Court found no special or exceptional circumstances in the present case to deviate from this rule. Therefore, the appeals against the Tribunal's order were dismissed. The issue of whether a question of law arose from the Tribunal's order was implicitly decided in the negative by upholding the High Court's dismissal of the applications to state a case.

What were the issues?

1. Whether the Supreme Court, in the absence of special or exceptional circumstances, can entertain an appeal directly against an order of the Income-tax Appellate Tribunal when the High Court has already dismissed an application under Section 66(2) of the Indian Income-tax Act, 1922, to state a case. The assessee's contention is that even if their appeal against the High Court's order under Section 66(2) fails on merits, the Supreme Court still has the power to consider their appeal against the Tribunal's order. The revenue's contentions are not explicitly recorded, but the judgment implies they supported the High Court's dismissal of the applications to state a case. The Supreme Court relies on the principles laid down in Chandi Prasad Chokhani v. State of Bihar, Dhakeswari Cotton Mills Ltd. v. Commissioner of Income-tax, West Bengal, and Sardar Baldev Singh v. Commissioner of Income-tax, Delhi and Ajmer.

Which sections of the Income-tax Act were involved?

Section 33(4),Section 66(2)

AI-generated summary — verify with the full judgment below

1962 Mr1. Htm Nalini JiuJ.h . •• ilfrs. /solyru Sorojba.shini Bo!t 1962 F1hru"1J 19. 306 SUPREME COURT REPORTS (I9e2) SUPP. house simply because Mrs. Boso said in hnr appli· cation for letters of administration that the house belonged to Mrs. )fitter. It 11p1wars th:it after the death of Mrs. '.\Jitter the thrt>e sisterR put forward three separate wills each in her f:wour and there was no question of one sister acting on Any repre- sentation made by another. 'Ve are therefore Of Opinion that llO question of PS(Oppcl ariRf'8 in this case.

The appeal therefore fails and is hereby dis- missed: N(• order as to costs. Appeal dismissed. ;\tfS. SOORAJ!lfULL NAGAR:'IIULL "· COM.\IISSIONER OF IXCO:llE-TAX, CALCUTTA (And connected appeal) (~. K. DAS, III. HIDAYATGLLAH and .J.C. SHAIJ, J.T.) Income Tax-Order nf Tribu.nal--Application.s by a.<S<ssee and Commi.,sioner of Income-tax to state a cn.se, diJJmissr.d byl lliqh Court-Appeal to Supreme rourt ag1inst nr.kr ofTri.huna -If maintainable-Indian /ncomr-ta.t Act, J.~22 (II of /.922)' ss. 33(4), 66(2)-Cons!itution of India, Art. 130. The Income-tax Appellate Tribunal pa.scd an order •· 33(4) of the Indian Income-

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