A.N.Sen, J. - (1.) In this reference under Section 66(1) of the Indian Income-tax Act, 1922, the following question of law has been referred to this court: "Whether the Income-tax Officer's order dated March 30, 1963, dropping the proceedings started under Section 22(2) could be the subject of an appeal under Section 30 of the Indian Income-tax Act, 1922."
(2.) The facts of the case have been fully set out in the statement of the case and the same may briefly be indicated. The reference relates to the assessment year 1959-60. The assessee is a company carrying on business in manufacture and sale of matches. It was served with a notice under Section 22(2) dated September 9, 1959, on September 17, 1959. The assessee did not submit any return within the time allowed under the notice but the assessee submitted a return on 25th August, 1961, disclosing a loss of Rs. 97,660. The Income-tax Officer, by his order dated 30th March, 1963, held that the assessee's claim to get the loss determined was barred by limitation prescribed under Section 22(2A) of the Indian Income-tax Act, 1922, and that the same could not be revived when a notice under Section 22(2) was issued. The Income-tax Officer further held that there was no further obligation on him to complete the assessment in such an event. The Income-tax Officer dropped the proceedings. Against the order of the Income-tax Officer the assessee appealed to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner dismissed the appeal holding: " Section 30(1) does not provide for an appeal where the Income-tax Officer has failed to pass an order even though his refusal to pass an order may not be in accordance with law. No appeal is provided for against the Income-tax Officer's action."
(3.) Against the order of the Appellate Assistant Commissioner the assessee preferred a further appeal to the Appellate Tribunal. The contention urged on behalf of the assessee before the Tribunal was that as the assessee had already been served with a notice under Section 22(2), Section 22(2A) did not apply, that the Income-tax Officer had no jurisdiction to pass the order he did and that the order was appealable. It was further submitted on behalf of the assessee before the Tribunal that the provisions contained in Section 30 should be interpreted in a manner as will advance justice and equity. It was contended on behalf of the departmental representative before the Tribunal that there was no right of appeal against the order passed by the Income-tax Officer. The Tribunal dismissed the appeal and held: "If no appeal is provided against a particular order passed by the Income-tax Officer, then the assessee cannot file an appeal before the Appellate Assistant Commissioner and ask for its being entertained on a liberal interpretation of the provisions of Section 30. The Appellate Assistant Commissioner cannot assume a power which the statute has not given him. Looking into the provision of Section 30(1) we find that there is no provision for an appeal against an order like the one before us. It is unfortunate that the assessee who appears to have a valid grievance has to be turned out on a technical ground. We are, however, unable to take any different view on a proper interpretation of the provisions of Section 30.";