LORT-WILLIAMS, J. - (1.) THIS is an application by the CIT, Bengal, for a certificate that this is a fit case for appeal to His Majesty in Council. The petition was presented on November 12th, the first day of sitting of the Court after the long vacation and was within time. But counsel on behalf of the respondents objected that although the petition had been served upon his clients, the notice of motion served upon them was insufficient because it was not in proper form. The notice omitted to call upon the opposite party to show cause as required by Chapter XXXIII, r. 3, of the Rules and Orders of this Court. The Court gave leave to the petitioner to amend the notice and directed him to reserve it. This was done on November 13th.
(2.) COUNSEL for the respondents then objected that the petition was barred by limitation because the amended notice was not given for the first day fixed for hearing Privy Council matters after the long vacation, as required by the rule and the provisions of the Limitation Act. The Advocate-General on behalf of the petitioner countered this objection by arguing that Chapter XXXIII, r. 3, thereof has no application to income-tax appeals, and that these are governed solely by the provisions of the CPC. The point is of importance, because hitherto it has been assumed that the practice on petitions for leave to appeal to the Privy Council in income-tax matters is governed by Chapter XXXIII, and this practice has been followed for many years. Rules under the IT Act have been made by this Court and are contained in Chapter XXX-A, but they do not touch the point in issue which is a matter of practice. Sec. 106(2) of the Government of India (Consolidating) Act, 1915, provides that "The High Courts have not and may not exercise any original jurisdiction in any matter concerning the Revenue or concerning any act ordered or done in the collection thereof, according to the usage and practice of the country or the law for the time being in force".
(3.) BUT S. 66(1) of the IT Act provides that "If in the course of any assessment under this Act or any proceeding in connection therewith other than a proceeding under Chapter VIII, a question of law arises, the CIT may, either on his own motion or on reference from any income-tax authority subordinate to him, draw up a statement of the case and refer it with his own "opinion thereon to the High Court"; and sub-ss. (2) and (3) provide for similar references at the instance of the assessees. 5. Sub-s. (5) provides "The High Court, upon the hearing of any such case, shall decide the questions of law raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded and shall send to the CIT by whom the case was stated a copy of such judgment under the seal of the Court and the signature of the Registrar, and the CIT shall dispose of the case accordingly . . . ." ;