CHINNUBHAI MADHOWLAL SIR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application to review the Assistant Taxing Masters order in relation to the costs of Civil Reference No. 11 of 1935, (reported in (1937) 5 I.T.R. 219) which was a reference to this Court made by the Commissioner of Income-tax under Section 66(2) of the Indian Income-tax Act.

(2.) THE order made on the reference was that the assessee should pay the costs of the Commissioner on the Original Side scale. In taxing the costs, the Assistant Taxing Master has allowed a fee for getting the reference settled by the Government Solicitor and the Advocate-General; and the question is whether he had any power to make such an allowance.

(3.) IT seems to me that it is the application of the assessee to the Commissioner to state a case and make a reference to the High Court which starts the proceedings which ultimately result in the reference, and in my opinion, the Court can deal with all the costs of, and subsequent to, the application. In a proper case, the Taxing Master is entitled to allow to the assessee, if he has been given his costs, the costs of obtaining proper advice in settling the application; and where costs are given, as in this case, to the Commissioner, in my opinion, the Taxing Master is entitled to allow the Commissioner the costs of getting the reference settled by the Government Solicitor and the Advocate-General. IT is entirely in the discretion of the Taxing Master to decide whether the case is of sufficient difficulty to justify the Commissioner in adopting the course. If the Taxing Master thinks that it is a simple case, he probably will not allow the fees for settling it. But most of these cases are not very simple, and it is of importance that they should be settled with accuracy by somebody acquainted with the art of draftsmanship.