Commissioner Of Income Tax, Madras v. S. Chenniappa Mudaliar, Madurai

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Chenniappa Mudaliar, Madurai) (24 szavt, 1969) (Fito Ho ato ag, ato THEM ate go UA Taz) framFHA Fe Vaz, 1922, are 33(4)—waadz GTasdAs Be, 1946,adie24—aar adits afeecn et sade aa, 8 cafe & arcomaaafen az at afaaat F 2—aar afeacoy Gury F Mae az Tifa wea & fey mage ?—am faa 24, arer 33(4) &afta & ?:| ATA Teas TAs A fraiwa e weeF fees geait at ata AAGZBU SY AIT aH RAT Tea A Ma afaara ¥ adie st) afeawy Fs HERTT AAT HCTF RATT STFA MAH safaa & ae aha st gases ®ferg fas fer at afta wz fear ate dar fear arar afaae zraeqaa Eee,1946 & fray 24 & ata areafaa aryea earoraa § afwan FF ag fazerfaa fae ag at m3 afarra al fate Pear frat & as goa a avafiuaWIT TAT sa ala F fa fH gar qaye elqeqaa wea, 1946 st fray 24, qaiTH AE STAT Slt H cafeay h area feat atta Ht afer wa F ghanaal aaa aaa é, afeare 2 1 ger eararag #7 fxg eqradis 3 ae afezataara fe are 33(4) % seta afer ada er ym ® arene oe fageraHa 4 fag arag ar, wa gt ada safeaa ar ar aay TezSay A ag faved fraaar g fe aferdi gre fee ao Bedi & gatealafaatiza —arzr 33(4) #1 arar viz fafaczaar ‘thereon’ (za Gz)Hafan ay fauna afsafeai grr fafafeaa fer ae gedit azar arsae Depa zeart F faare azar Dar 2i ar st Bag qea che Gyfacta wee fear ar ear 2 fH argaa samt sudo AA H gee ut arr 66 # st sata yea vaenea H fafa B gett oz fade eva Rat3 faaa az fee ay adie at, a oar sha er a gra al af Zt,aataamey BHM TT 33(4) R aye va ae HE aia fee faa arfea wxHwa 21 Het aH Gea H geal wr araea 2 afgancy er fafsay afewstarsea gia faspa wast afaarfar a gi gata ear zz aA saH IIEae area ar gate ate ag} ati 2: za gegen afeetfar ar diaefsa fata far are oy df fear ar amar 3 ale tar aa oe agi fear orTEI Aa TH fH tay afar + arr 33(4) & adi ofa wea ofaTHT BT| fray 24 eqezaay ater 33(4) # faeg 2 wie tae H areqa erate aKfeat fare & ata faegar ay eo Hf fay ai gary tas ® soda Aray gta 2 alana wenfara ay get amas, gar wb (Shri BhagwanRadha Kishan Vs, Commissioner of Income-tay, U.P.), 22 giée 10 I<e104; tase qearzra ale Fe wea se MRT gaa, wea (Ravula SubbaRao & Ors Vs. Commissi mer of Incom-tax, Madras), 27 arZo Zio WIZo164; ama Ue Bfeatet AIR HB aa ses BIRT mecara(MangatRam Kuthiala& Ors. Vs. Commissioner of Income-tax, Punjab), 38 argodio aizo1, gan wa farafafees aa amar oiaaa, Hela, arad(HukumchandMills Ltd.Vs,Commissioner of Income-tax,Central,Bombay), 63afZo toarte232; BRL alaaa,Agia FATT aAs YoGuUIToTHoUAIXoMantasyBizzmiz(Commissionerof Income-taxMadras Fs. Mtt. Ar. S, Ar. Arunachalim Chettiar), 23 age Zto Fito 180;MaKe Madad, Wegsa Tay faleatPeat eztarf aadlitaay= Heat flats> (Commissioner~~ooof Income-tax, Bombay, I’s. Scindia Steam Navigation Co. Ltd.), 42 aTZo0Zto WITo 589; fafges fea aT| fafa aciat afaanfeat : 1968 a Fo 1015 aat fafae adte 1961 & Fo 194 ara cae aay (1961 FI Ao 74 arat fader) H Azaseq araaa F arta 30 aia, 1964 ara faata atx area F fees asta| aitatal Bt attaqat ATAUA, WXe TAo TAL,Mito Uoa,waz Alt Ato Slo Wal meaal wt att aTAA MITo MUAH MIT AITo TTaAGa ATTA sararaa at faata eararfagfa wo wat waz A fear| raratfaafa atat— S. CHENNIAPPA MUDALIAR, MADURAI February 24, 1969 [J. C. SHAH, V. RAMASWAM! AND A. N. GROVER, JJ.] Income Tax Act 1922, section 33(4)-Appellate Tribunal Rules !946; Rule 24-lf Appellate Tribunal has powers to dismiss appeal for default in appearance-Whether Tribunal bound to pass orders on merits-If rule 24 ultra vires section 33(4). The respondent's appeal against an order of assessment was rejected by the Appellate Assistant Commissioner and he, the -.after appealed to the Appellate Tribunal. The Tribunal, after having granted some adjourn-ments, dismissed the appeal for default in appearance Qn a day fixed for the hearing, purporting to do so under rule 24 of the Appellate Tribunal Rules, 1946. The Hi~h Court directed the Tribunal to refer two questions to itself, one relating to the merits and the other to the effect whether rule 24 of the Appellate Tribunal Rules, 1946, in so far as it enab·es the Tri-bunal to dismiss an appeal in default in appearance, is ultra vlres. A special bench of the High Court took the view that under section 3 3 ( 4) the Tribunal ·was bound to dispose of the. appeal on the merits, whether the appellant was present or not. On appeal to this Court, HELD : It follows from the language of s. 33 ( 4) and in particular the use of the word "thereon" that the Tribunal has to go into the cor-rectness or otherwise of the points decided by the departmental authorities in the light of the submissions made by the appellant. This can only be done by giving a decision on the merits on questions of fact and law and not by merely disposing of the appeal on the ground that the party con-cerned bad failed to appear, [824 C-D] The provisions contained in s, 66 about making a reference on QUO$• lions of law to the High Court would be rendered nugatory if a power is attributed to the Appellate Tribunal by which it can dismiss an appeal, which has otherwise been properly filed, for default, without making an order thereon in accordance with s. 33(4). So far as the questions of fact are concerned the deci:sion of the Tribunal is final and reference can be sought to the High Court only on questions of law. The High Court exercises purely advisory jurisdiction and has no appellate or revisional powers. The advisory jurisdiction can be exercised on a proper reference being made and that cannot be done unless the Tribunal itself bas passed a proper order under s. 33(4). [824 E-H] Rule 24 clearly comes into conflict with section 33(4) and in the event of repugnancy between the substantive p'rovisions of the Act and, a rule, it is the rule which must give way to the provisions of the Act. [825 HJ Shri Bhtgwan Radha Kishen v. Commissioner of Income tax, U.P. 22 l.T.R. 104; Ruvula Subba Rao & Ors. v. Commis.<ioner of Income tax MttdMs, 27 l.T.R. 164; Mangat Ram Kurhiala & Ors. v. Commissioner of Income tax, Punjab, 38 I.T.R. 1; Hukumchand Mi/ls Lrd. v. Commissioner of Income tax, Central Bombay, 63 I.T.R. 232; Com'11issloner of lnco1118 A tax Madr/18 v. Mtt. Ar. S. Ar. Aru11JJcha/am Ch<ttiar, 23 I.T.R. 180 and Co1nmissioner of Income tax, Bombay v. Scirtdia Steam Navigation Co. Ltd. 42 J.T.R. 589, referred to. CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1015 of 1968. B Appeal from. the judgment and order dated April 30, 1964 of the Madras High Court in T.C. No. 194 of 1961 (Reference No. 74 of 1961). D. Narsaraju, R.H. Dhebar, R. N. Sachthey and B. D. Sharma, for the appellll\.'lt. R. Gopalkrishnan and R. Ba/asubramaniam, for the respon-c dent. The Judgment of the Court was delivered by Grover, J. This is an appeal by certificate from a judgment of the Special Bench of the Madras High Court in which the sole question that has to be determined is whether Rule 24 of the Ap-D pellate Tribunal Rules, 1946, insofar as it enables the Tribunal to dismiss an appeal for default of appearance was ultra vires the provisions of s. 33 of the Income tax Act, 1922, hereinafter called the "Act". The facts which gave rise to the reference which was made to the High Court by the Appellate Tribunal lie within a narrow E compass. The assessee owned 1674 shares in Asher Textiles Ltd. and 9 out of 20 shares in Textile Corporation (Private) Ltd. ~t Tiruppur. The latter company was the managing agents of the Asher Textiles Ltd. The assessee was a Joint Managing Director of the Textile Corporation (Private) Ltd. along with one P. D. Asher. The assessee sold on December 21, 1954 his entire holding F in two companies to Asher and some of his relations. These sales resulted in a profit of Rs. 72,515/- and Rs. 3,14,100/- respectively. The Income tax Officer assessed these amounts to tax for the assesment year 1956-57 under s. 10(5A) of the Act as compen-sation earned for parting with the effective power of management. The assessment was upheld by the Appellate Assistant Commis-G sioner. The assessee appealed to the Appellate Tribunal. After some adjournments the appeal was finally fixed for hearing on Augu,:·. 26, 1958. On that date no one was present on behalf of the assessee nor was there any application for an adjournment. On August 28, 1958 the Tribunal dismissed the appeal for default of appearance. This the Tribunal purported to do under Rule 24 H of the Appellate Tribunal Rules, 1946 as amended by notification dated January 26, 1948. Five weeks after the disposal of the appeal the assessee filed a petition before the Appellate Tribunal praying for its restoration. It was stated, inter alia, in that petition L 11 Sup Cl/69-3 (1969] 3 S.C.R. SUPREME COURT REPORTS 820 that it was owing to some misapprehension on the part of the A assessee's auditors at Coimbatore that the date of the hearing of the appeal was not intimated to the counsel at Madras who was convalescing there after a surgical operation. The Tribunal did not consider that there was sufficient cause for restoration and rejected the petition. The assessee applied for a reference under s. 66( 1) of the Act on two questions of law but that application B was rejected by the Tribunal. The assessee approached the High Court under s. 66(2) of the Act and on April}, 1960 the High Court directed the Tribunal to state the case on two questions. The matter was first heard by a division bench but owing 10 the validity of Rule 24 having been canvasse~ a special bench consist· ing of the Chief Justice arid two judges was constituted. The c special bench reframed the first question thus : "Whether rule 24 of the Appellate Tribunal Rules, 1946 in so far as it enables the tribunal to dismiss an appeal for default of appearance, is ultra vires." The second question was "Whether on the facts and in the circumstances of the case the two sums of Rs. 72,515 and Rs. 3,14,100 were assessable to tax under s. 10(5A) of the Income tax Act?" Rule 24 was framed under sub-s. (8) of s. 5A of the Act. This provision confers power on the Appellate Tribunal to frame Rules regulating its own procedure. Section 5A (8) reads : E to frame F "Subject to the provisions of this Act, the appellate tribunal shall have power to regulate its own procedure and the procedure of Benches of the Tribunal in all mat-ters arising out of the discharge of its functions, includ-ing the places at which the Benches shall hold their sittings." FMT _gMsror upsdior Gum mhernwaer seh FMlw Qorailed out] walt trot ovr ol. bewWent cow odliili_OlitogH)(HLIL, Nev 2 orar Gli Sven BITUUCT Fer Ulenr Coir o)Q UBIG®SOHW Clarovrig(hhStT. lbSdlwW lms Bpewrr oluloitige Hlrours (psougmrounmr. out) wHlotetomronr saeTOOTLION(HL_oor Cll SOVenLod BITLUUGTEFor LiHrurs QWAGRHITS O)(mHbHSMr. Fun 21, 1994-0 oA wo) trot BbSQ\7oxT(h) HIMIocoTrbisealey|Ll Hors (hhs BDonorLMMib Fass 2 MoalornrsensgqH ollmmalt_corr. BHH (peomouw em./2,919/- wmmit em.3,14,100/- afsi crubrs (Py bெதாைககைள FL_L_Ulmey|10(Se7)-eoTth) i O951 BT T BIaMlHanjAHA OT elpvlw Sloot HAH Q)PLItL_ocH ou(mworoes# ot) 9LODILILIL_() OQpoxrigmMaresr out! 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CLovipenmuflt_) FSruUuTD_(HOUT a5CL TUT31, 1946 655) uiHOH olson wi] Glouetult_t sy. ad] 24 SCyp SoluytMeorer HubSMOTHEHL HVOHIவிசரைண Geuo)miCEACAIGQHD MOUSSLILIநாளிேலா GWWev(LpeOnl FIT 6)oTHSAISOSroraTLIvULGl6ev (pen mu(Lp oT oot om eoTOOTMOILICL ev(LpemHOUNIMO BHOW (61hDOV]62 (Ih HON ae wile TAIT BH agra Ves eararaa al fata eqs # vafauta ® fees at we 3 frat camara ae cet aaearfta featarar ar fH azarmiae eaaqaat eee, 1946 ar fran 24, wet ae fe seal ara UIT ATTAa FH afeer F area feet aie a arfea wet F fae afaay at artaavar &, gna Zea az, 1922 al, fs ga art Vaz’ Her wal g, Be 33 Fsraeal afararer 3||far aeat & IIR qt ada afraey gre sea emarag a fata fearmat at Faga ws a 81 fraifeat F earfeer F wat caaerga fafats %1674 sit atx faaege H feaa Zanerga sreditaa (srgae) fafats #20 satHAO se Aqearaahsa Heady wae eageiga fafats st weer afyaaiot | fratfedl dro Ho BNC aA OH UH cafes H ary caaerga HreNtat(srgaz) fafats ar dgaa vara fram ar1 fraifedt @ 21 fearaz, 1954 atsa alal seafaal at aged anea afaat wae A aT HE staal Bl Fa aTam fasal & afearaereq Harm? 72,515 ETF WIT 3,14,100 eae aT ATT gar Iarane aifsac a feaizea aq 1956-57 & fare ga cant ot saeg BY paralafer & vam aa % fag safe sfaae F BTR tae st are10(5H) ¥ada at fasifea fearga fretza at atta aarae aged a BTA CATfaatfed & acre afaator 8 ala at egy eaTal F weag atte FT GaaTE& far aaa ere 26 ameq,1958 artefaaa at Tei sa arte ayfreafizdt at ate & arg at oofeaa aah or ate at a cama HF faa wy arazafRar ar yr)28 amea, 1958 Bt afyata A vrata Ba F alate area ata afta er Aafseanrar gre tar Herat arta 26 FATTY,1958wat afaqaar gre aqaafar waz zaeqaa eve, 1946 % fare 24%gaa aeiaa ary ata & fae % ota aearge weave frathedt & odie afaae Haneywm facta sree fear fat adie & gerade # fae gptar a a$ teafatter Ho aeg arate aia ag wfaa fear aa a fH dar starazz F faatfedtRe aqviere a BG Taq BZAT > era garg fe ata sl agang a aiaWaa F Heeea BY, HT Sa TAT aal med TAHA(surgical operation) #FAT La ATA FX VST aT, gatfaa ae al TeatafsHra % ae faarxfear fe searaaa & fea qatea aga agt ar alt gafac fade anigg ax fearfaatfeat 4 Caz at qtr 66(1) % aeita fafa Fagealae fala & fagaiaaa frat fg afsazm a ge maar Tt aage wr feat1 faaifedt A BazaT at 66(2) & watt Sea eared 4 fazaa fearate5 ada,1960 aSeq rqraray Ft ufaHey at ya free fear fe az atseat oe aes a- feaqqT| ATM BT GAA Tae aos cgrads a at fHeg fase 24 af fafaateqareariqa BT at Te aT gafaa qeq earaifagia we ateqraraial @ afsa wafase earadio ar aoa fear may| fase eats A agar seq TT Ta: faeaat zaWHIT BY| ‘aqy wtae casqaa wea, 1946 #1 faam 24, wet an fe yaararaeg saga Za A eafaaaareafeat ada a afer at #fax afaacy Bl gas zara zo” ZHU SIT TY WHIT AT— aay are B qeat wie aiefeafaat B aaAATe72,515Bay az3,14,100 eae ay tal wea geen cam Uae SP ater10(5%)B® aaaat % fay fate ay ?”’ faay 24 wae HT are SH Bt Sra (8) F wala facfaa fear agararicasqarq Fadia afanen et agai shear fafagfaa axafac faga faxfsamrt Ht afeaat gaa Fl Te J1 ater SH(8) Za WHIT A— ca cHIX Bl aHAT — cHIX Bl aHAT — Bl aHAT — aHAT — —“aq ofataaa & gard # emda tet ga ata afer ofataaa & gard # emda tet ga ata afer & gard # emda tet ga ata afer gard # emda tet ga ata afer # emda tet ga ata afer emda tet ga ata afer tet ga ata afer ga ata afer ata afer aferFT*“Subject to theprovisions ofthis Act, theappellate tribunal * faeal Fag ca cHIX Bl aHAT — cHIX Bl aHAT — Bl aHAT — aHAT — — “aq ofataaa & gard # emda tet ga ata afer ofataaa & gard # emda tet ga ata afer & gard # emda tet ga ata afer gard # emda tet ga ata afer # emda tet ga ata afer emda tet ga ata afer tet ga ata afer ga ata afer ata afer aferFT [1970] 1 gH fro Fo shall have power to regulate its own procedure, and the procedureof Benches of the Tribunal in all matters arising out of the dischargeof its functions, including the places at which the Benchesshallhold their sittings.” on] FIT 6 6oT(HDHD O)5 IT LILon) (H LILI6)FUIWIOD(Lp Q)55 old! coor 26, 1946 GCGsdlulee gQMollsmaulerul FHHO)FUIWILILIL_L_ HF).SHOTLL BH) HPHAMTL UTM! S “OF IT IT 60 ேததி MOL eciue__|நாளிேலா HVOHIவிசரைண Geuo)miCEACAIGQHD MOUSSLILImHiretloovir CLosv(LpemMuTL_L_irart (LpesrAHHH Owovipoen5 IT LILHOUNIMO B5 OWT6)FUIWIOE (Q)on] 5)erOU (1h 60) 5 SOT (6)FUIWIL GCLDev (IP3] (1THHHIAOASATONவழிவைக(Q)Ve ou](HLILICiime5 ITLILIOU (HOOD UW) Cle (IpemM5 OWTOF WOUHNOHUF]6 (HHO OVLIeert65CoariGWwey5 OWT6)FUIWIL2 HHTOOU (h6D HUI) H (HHTT 1 HHTL_(hyWCஅைதTHIOlFWonl FIT T6T(HHS O) STOW 9] 5] BIT OUI LவிதிDha-உைடயBL_HகாலOUT 6UIT LOM TOOT 6) oFL_L19619) uwimLim6TI1h] LI 1 Dig LiLo D2 (HOUT SS6T60T LD_ WIT Ihd|LDOFIMLI9 LOB (hd 6) 1 ooLiIvG(L5 ITLIL]பாிசீலைனO)FWIHGWweyFL_L 5A]oo FLO LIS LLI Mey eOp TT WIFIM LJ LOIPBOvoTL_OST HHHIOTO “Q)bநிைலையGr (htsFo_MILD 6U (1h LLod) L©) LIIT (HUBSCeOVEAQL (9) midon] 60) L_{MLO LIGed (lpenSITLILI (Q)\FFLLHH)TM LI(h)HHLU(3)DML LILITFL_L_ HA]OUTolFeH OVO HFy(FH) OU1H LIT(QOlas exerCWeyIHTLUeorooI ovYOu UipsbM] 6hIOUT BOஉதவிO)Fwism HUF]9 6V6U T@MluwuTHDOULD b6T (LPLICHorel 5 on) ] 60) Eien BDOU TH(HD WMT SMT OUT HOTTHTLILIGT TSDUT BOULPGUSSI(Lpoorestloou UI6U LPCLev(Ipen 5 ToO)FUMANLille33(4)வழிவைகOlFWIGIM6ITUILOULD [Bl (HGWWev(Lpe5 ITLILI6aL5H)நீதிபாிபாலன(LP 60) oTOO6)sort] o60qo) outOULD b6EITUILIWIGTLIH) H6T HTTTHA] M BHHSOULD 5 ITLOT oGor 6dsTLgoT SILI LIT5 IT LO o(CPL u6aOULD HT LIL ooOU (HOD HUI] 5 OT 6) FUIWILIHISOULD B5 (HH) CriimOTI5IT O(Q)(HBB5 (F HlCiimeOULP விசாரைண6TOO2 _ WIT Ih FOOT 6FL_L_LILI கடைமைய6) F WIELOM ulfeyO6cy-oorHTB©)FUWIWIGil6ev(Lpoul > F1h &) LDoul Fmt LILiHAD WTOUFWLO TSIMuiMey33(4)-e LIWIGOT LI (bSHOOTie6T6OUTTHOO5ITO6TOOCLE (LPemM UTFIT TFWFHOOUTMIS(9)(Go! 66TOOT 5M bS)M Sஎனேவ,விதி24,Lille33(A)aq(Q) ovo(9)(hbLOL_(h3 ITLILICle (IpemM5 (HH) Wi)HTLIL o(Lp osஆனாேலாHOvvDI6VEUIT(Lp©)Fuu5] TT LDoors) 6YITE1941-9)Df,(LP Hoo(Q)விதி9) WM MILI) AAQ)oueSIT(Q) (h1948-9)Df 6Hl(HHHLILHMCUTE HOULg 6H»)6Q)bவிதி6U (IhLDGed (LpemSF TLILITWIHGWev(IpemmuTOU (HOOD UN 65 OWT6) F 2d) 06TOOQ)FFLLHZS] OLiiMl33(4)-5H(Lp ID oer AAFLLMGITHWTsH.| GWev(IpemmuTHTLILIGWev(LpemFIT LILI Ud 5)9] 515 TTLiife33(4)LOM uifey5ஏ(8)LOM | 5CuimioJ LI(bh) OY EARCLP 6O)UIMLILIஎனேவ,விதி24FLL(LPoTMIஅைதulfey33(4)-ைனOFUVMTHHTSD M6To6)FTr (PLE 6ToUO] UJMIHHLIulmey33(4)-6FT HHIHHOGlajenLILIGNL OELOD M (LPL FITLILITWd)GLev (penOULD dD> HHH (FH) WI 6ST(Q)(Go essr(Q)eveGwev(lpen mul Ou IT55HஆதரவாகHUSBTLIT©O)LOLLOM LIGHT>Wi1h 3) LD 687LfLIS ராதா TRIM,OU(BLOT Owy. Li.22 29.1 YT.104Royer FULT Tel womb wot, ftalt, alhlorooreaut) Cot greon(2/ 2.19.41 TO4)0mMmMID WSL. TIT GFBMNTVT LOMMILD OU(BLOT oDY, COSLICHFTLUI2.19. Y47.ஆகியைவeuool UjMIHH(Q)FFL_LHLiltl5ஏGed (pen 5h IT LIHUGSLITL26J-D2 oo2-_uUltla(1)(IP(4)FIT LILI WF] 6A OMLDOO EVLOM 2 mMILivile1h) WIFOSSITM AI. F29 t UlMe(5)(IP(7)FT LILIT UF] 6J LOT 6THAaYIon6)FUIEGow 66TOOTLFn_MN| 2 1_vil(8)-6HOOT OO “Q)FFLL HSIN UMSWUHDAOHAAH 21 Lh) CrHTLILITWLD HOH] GWOTYAOOT HLHAHIW QL BiHoTபணிகைள loom Geum ms (Q) (6T(LDONT HFHIAD AM YL MOT OFTHHA HOMlL (PONOMoMwuujl, 5DI LOT OY1560)L_(LP6D62 (Lp [hIHABATTHODA ©)HTL (hb(HD GWWevd(LpeFIT LILI WF) 6dHHT,O)FWIED(LOM M The Appellate Tribunal first made certain Rules which were pub-lished by means of a·notification dated Feburary 1, 1941. Rule 36 provided that the Tribunal shall determine the appeal on merits notwithstanding the fact that the appellant did not choose to appear. The Tribunal was also empowered to restore an appeal which had been disposed of Without hearing the appellant. The Rules made in 1941 were substituted by the Appellate Tri-bunal Rules, 1946 which were promulgated by means of Income· tax Appellate Tribunal Notification, dated October 31, 1946. Rule 24 was in the followfug tenns : "Where on the day fixed for hearing or any other day to which the hearing may be adjourned, the appel- lant does not appear when the appeal is called on for hearing, the Tribunal may, in its discretion, either dis-miss the appeal for default or may hear it ex parte ." This Rule was amended by means of a notification dated January 26, 1948 and it took the following shape : "Where on the day fixed for hearing or any other day to which the hearing may be adjourned, the appel-lant does not appear when the appeal is called on for hearing, the tribunal may dismiss the appeal for default." The Rule contained no provision for restoring an appeal dismissed · C for default. The Special Bench o~ the High Court noticed the previous history of Rule 24 as also the terms in which it came· to be framed after the passing of the Income tax Act, 1961 which enables the Tribunal, in its discretion, either to dismiss the appeal for default D or to hear it ex parte in case of non-appearance of the parties and further enables the Tribunal to set aside the dismissal on suffi-cient cause being shown for non-appearance. After referring to various decided cases and examining the relevant provisions of the Act, the Special Bench sun'Uned up the position thus : "To sum up the position, the Appellate Tribunal is E the appointed machinery under the Act for finally decid-ing questions of fact in relation to assessment of income-tax. Its composition, consisting as it does of qualified persons in law and accountancy, makes it peculiarly qualified to deal with all questions raised . in a case, whether there be a5sistance from the party or his counsel F or riot. Section 33 ( 4) obliges it to decide an appeal, after giving an opportunity to the parties to put forward their case. The giving of the opportunity only empha-sises the character of the quasi-judicial function pet, formed by the Appellate Tribunal. The fact that that opportunity is not ayailed of in a particular case, will not entitle the Tribunal not to decide the case. There G can be no decision 'of the case on its merits if the matter is to be disposed of for default of appearance of the parties. Further, an adjudication on the merits of the case is essential to enable the High Coun to pedorm its statutory duty and for the Supreme Coun to hear lllll appeal filed under section 66-A. Section 33 ( 4) itself H indicate& by the use of the word ''thereon" that the. deci-sion . should relate to the subject matter of the appeal Rule 24, therefore, to be consistent with s. 33 ( 4) could only empower the Tribunal to dispose of the appeal on 8 22 gia afasug a aagan afaqa fags gare at arta| ataty,1941 at Thafaqaat & areas & aaifaa feo me a1 faze 36 Hae safes fear Tar@ fe afrara ade at ga dea % gla gow qurgay F ATaTT T= aaaitaata fe adarell soaara aét gar) afaaca at feat Bal atte FI yeqadaBa ay wt afea sea 2 faaar faaera adiarlt a gaarg fae feat fear aTtT a 11941 F sara ay fraal F cqa ae apze zrqeqaa wea,1946 Tafag me & ot area 31 wazaz, 1946 are aiaat ate atest afaqaar Fafta seariga few ae 4fra 24 ea cae e— *“Where on the day fixedforhearing or any other day towhich the hearing mav beadjourned, the appellant does notappear when the appeal is called on for hearing, the Tribunal may,in its discretion, either dismiss the appcal for default or may hear itex parte.” ag fram arte 26 waa, 1948 are afaaaar % afeg aafaa fear maT WITTI FAHT AZ ST st TM eaaqomadt ofear ar agar agageal ® fraga a vaya ZI ale aafagat H aga earrdiay at ofa ar fafeana wer at af oerstatfaad arate ¥ carat Ale wei erate waa FoR FTA” ecaet gaarg & fan fara fea at ar feat ce faa, frafar #fag qaarg cafna at 1g Zt, atartl sa aes SIAa AST iat¢ Faatte at garage & far gare at ara @, zai alae aT fqaam 9%aiast enfaan & area ar at aifea ax aaa ar gaat onratyqaare HT aH1” AART WAIT, ARIA To aa fray 4 aqfaaa & are afta a ag atte at gearatad erafaw FeBlaeq Tal AT| sea earaaa stfaery eqiaqis 4 faay 24} gg efaara Wt aaT artai va faaeaat ot cara fear faa oraax afaftan,1961 F afta ga Fqeara gu fran at fataar at ae dt) a2 fran geal & sada a aA ataa & ufsaem at ea aia # fac aaa aarar 2 fe ag aaa fade az ar atana a cafaan & are afta ax 2 ar vast wacetla gags st ge artaa ata & faa dtafaaen st angaarar &fe az sidsa a 2afacqaier 2am afaa wer 9t after Hea H Sa FT ATT HT1 fafars fafaferamal at fafess Hza aye Vaz H gana aaa By) Tet ww F Teara fagsarads at aret fafa ar aria sa sae fear— ‘aria Hana ofan maat & faaizay Farag Aavg Fgaat at aad wr a faieaa wet % fer tas H ela faze cH aa2 Leaar aaa, wa fa fafa ait aarmea a afga safeaat & faaarAart 2, fedl area A gar ag aat seal oe fase wea & far ekfafase eT a aa gaat 3 we sl Taiz ar gam arsesa Ht Mc aaaa fact at at faet1 arer 33(4) & wea ag areaar erat ng 3 fpTE TART BT ATA TAHAA TAT HWA HI TIAL 34H geara ada arfafasaa Btaaat HI fear ara aT ade afenwe gre gaat feoary area earfra wer Hay H eawSI IT MNT Bat 2za aaa fH vawaar ar feat faface area & ora agt gerat agi 2 aia Jol azm mica aat at arat fe ag ana a fafasag a stafe are ar *fardl Hoag Za TIT Bt THAT F— caat aaa & fau fraadfeat ai ar fear oe fea, fue feafan qaag cafaa at ag zt, waa ga aaa yoaara adi Hat & waata at gaarefar Gare FT oat 2, agi ahaa atte wt cafSapo afer eT AHA’