Law:

Section:

Section 251 of the Income-tax Act, 1961 - Commissioner (Appeals) - Powers of - AAC had directed ITO to determine real ownership of bank deposit which was in dispute - Five years having been passed, ITO did not determine said issue - Whether delay made by ITO amounted to indiscipline subversive of rule of law - Held, yes (Matter remanded with direction to ITO to determine ownership of bank deposit within six months). FACTS In respect of a bank deposit standing in M's name, 'M' contested his ownership and urged that the same belonged to his uncle, the respondent. His contention was over ruled by the ITO but, on appeal, the AAC directed the ITO to determine the real ownership of the bank deposit. This was done in Sept. 1970 but admittedly, by October 1975, the ITO had not yet determined the real ownership as between the uncle and the nephew. HELD There was no valid reason why the ITO should have delayed so long and indeed administrative officers and Tribunals are taking much longer time than is necessary, thereby defeating the whole purpose of creating quasi-judicial Tribunals calculated to produce quick decisions, especially in fiscal matter. Five years to dawdle over the decision of a small matter directed by an appellate authority amounted to indiscipline subversive of the rule of law. The mere fact that a writ petition was pending in the High Court, especially in the background of no stay having been granted, showed that the alibi of a High Court proceeding could not be successfully put forward by the ITO for his slow motion in settling the question directed by his appellate officer. Law must move quick not merely in the Courts but also before Tribunals and officers charged with the duty of expeditious administrative justice. There could not be any doubt that either the uncle or nephew must pay the tax under normal circumstances and they could not play off one against the another to defeat the claims of the revenue. Even so, the High Court disposed of this case in appeal on certain assumptions and representations, for which the income-tax department was largely responsible. The result was that there had been no investigation into the basic question raised…

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