METROPOLITAN STRUCTURAL WORKS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The short point involved in this case is a point of limitation. It appears that the petitioner was assessed to a certain amount of tax and in respect of the amount so assessed, a demand notice was issued on 29-9-1948. The petitioner appealed against the assessment and the Appellate Assistant Commissioner ordered a reduction of the tax. Thereupon a fresh notice of demand in respect of the sum to which the tax was reduced was issued on 14-10-49. The petitioner was still not satisfied & preferred a further appeal to the Tribunal. He was again successful and the tax assessed on him was further reduced. Thereupon, a third notice of demand in respect of the amount of which the tax was finally reduced was issued on 31-3-1952.

(2.) Thereafter, the Income-tax Officer took action under Section 46(2) of the Act and sent a certificate to the Collector. The petitioner raised an objection that the proceedings initiated by such certificate were barred by limitation, inasmuch as according to him, the period of "one year from the last day of the financial year in which any demand is made under this Act", contemplated by Sub-section (7) of Section 46 of the Act, was to be computed by reference to the first of the notices of demand, that is to say, the notice issued on 29-9-1948. There can be no question that if the period of one year was to be computed from 29-9-1948, the proceedings initiated in the present case were clearly time-barred.

(3.) The Certificate Officer overruled the petitioner's contention. Thereafter, he moved this Court and obtained the present Rule.