COMMISSIONER OF INCOME TAX Vs. BABU RAM CHANDRA BHAN

JUDGEMENT

(1.) THERE existed a firm consisting of four partners. Among the partners were Babu Ram, Satya Deo and Mahabir Prasad. The firm was dissolved on October 22, 1957. The firm was assessed as such for assessment years 1957-58 and 1958-59. THERE were two separate appeals filed against the assessment orders. In the first instance, an appeal was filed by Babu Ram, partner. That appeal was disposed of by the Appellate Assistant Commissioner on July 28, 1962. In the meanwhile, another partner, Mahabir Prasad, filed an independent appeal on May 5, 1962. The appeal of Mahabir Prasad was dismissed by the Appellate Assistant Commissioner on January 8, 1963, on two grounds. Firstly, the appeal was barred by time. Secondly, in view of the prior appeal filed by Babu Ram, partner, another appeal by Mahabir Prasad was not maintainable. Against the decision of the Appellate Assistant Commissioner, Mahabir Prasad went up in further appeal before the Income-tax Appellate Tribunal, Delhi Bench "C". The Tribunal reversed the decision of the Appellate Assistant Commissioner on both the points. The Tribunal held that Mahabir Prasad's appeal was within time, and was maintainable in spite of the fact that another appeal had been previously filed by Babu Ram. The Tribunal, therefore, directed rehearing of the appeal by Mahabir Prasad.

(2.) BEING dissatisfied with the Tribunal's decision, the Commissioner of Income-tax, U.P., applied for a reference to this court. Accordingly, the Tribunal has referred to this court the following questions of law :

(3.) ON the question of limitation, the relevant facts are these. Demand notice was served upon Satya Deo, partner, on March 27, 1962. Mahabir Prasad applied for a copy of the assessment order on April 19, 1962. He got the copy on May 3, 1962. The appeal was filed by Mahabir Prasad on May 5, 1962. The question is whether Mahabir Prasad's appeal was within limitation.