Law:

Section:

Section 246, read with section 237 of the Income-tax Act, 1961 [Corresponding to section 30, read with section 48 of the Indian Income-tax Act, 1922] - Commissioner (Appeals) - Appealable orders - Assessment year 1946-47 - On 18-8-1945, assessee, a tax advisor-firm sent a letter to ITO requesting for refund of tax deducted at source stating that assessee-trust being one wholly for charitable purposes, its income was exempt from tax under section 4(3)(i) of 1922 Act - On 24-11-1949, ITO sent a letter stating that as beneficiaries were not indicated with reasonable certainty there was no valid trust and, therefore, income of trust was not exempt - Firm requested several times to make an express order refusing claim for refund - In letter dated 2-6-1950, ITO replied that since no claim for refund in prescribed form and in prescribed manner was made by trust question of granting/refusing refund did not arise - AAC and Tribunal held that no appeal lay from letter of ITO dated 2-6-1950 - Whether said letter dated 18-8-1945 which was signed by income-tax advisor was not a proper application - Held, yes - Whether since order of ITO dated 24-11-1949 could not be regarded as an order refusing refund, it would not be appealable under section 30 - Held, yes - Whether ITO's letter dated 2-6-1950 was just an intimation that there was no proper application for refund and, was therefore not appealable - Held, yes - Whether once it was held that there was never any proper application under section 48, there could no longer be any question of considering assessee's claim for refund on merits - Held, yes FACTS On 18-8-1945 a firm of income-tax practitioners, addressed a letter to the ITO regarding the trust and stating that the trust being one wholly for charitable purposes its income was exempt from tax and therefore a refund of tax deducted at source from certain dividend amounts ought to be granted. After a good deal of correspondence, enquiries, a number of sittings and discussions, the ITO sent a letter to the applicant on 24-11-1949 stating that the beneficiaries had not been indicated with reasonable certainty and therefore, no valid trust was created by the execution of…

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