Ajit K.Sengupta, J. - (1.) At the instance of the Commissioner of Income-tax, the following question of law has been referred to this court under Section 256(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the appeal filed by the assessee before the Appellate Assistant Commissioner on October 9, 1975, for the assessment year 1974-75, would not come within the purview of Sub-section (4) of Section 249 of the Income-tax Act, 1961, which was inserted by the Taxation Laws (Amendment) Act, 1975, with effect from October 1, 1975 ?"
(2.) The facts relating to this reference are shortly stated hereafter : For the year under reference, the assessment was framed by the Income-tax Officer under Section 143(3) of the Act on July 31, 1975. Against the said order of the Income-tax Officer, the assessee preferred an appeal to the Appellate Assistant Commissioner on October 9, 1975. Meanwhile, Sub-section (4) was inserted in Section 249 of the Act by Section 59 of the Taxation Laws (Amendment) Act, 1975, with effect from October 1, 1975. Under the said sub-section, an assessee is required to pay the undisputed tax into the Treasury in order to enable him to file an appeal before the Appellate Assistant Commissioner. Since, in the present case, the assessee had not paid the undisputed tax before filing the appeal to the Appellate Assistant Commissioner, the Appellate Assistant Commissioner dismissed the appeal as incompetent.
(3.) It was submitted before the Tribunal on behalf of the assessee that the provisions of Sub-section (4) of Section 249 of the Act, having come into force on October 1, 1975, would be applicable to the appeals for and from the assessment year 1976-77. It was submitted that since the year under reference is the assessment year 1974-75, the provisions of Sub-section (4) of Section 249 were not at all attracted. It was submitted on behalf of the Revenue that the provisions of Sub-section (4) of Section 249 of the Act would apply to all appeals filed after October 1, 1975. Therefore, since the assessee had filed the appeal before the Appellate Assistant Commissioner on October 9, 1975, the provisions of Sub-section (4) of Section 249 of the Act were clearly attracted in the assessee's case also. It was submitted that the Appellate Assistant Commissioner was fully justified in dismissing the appeal as incompetent.;