(Appeals by special leave from the judgment and order dated March 8, 1976 of the Gujarat High Court in I.T.As. Nos.68 to 70 of 1975).

Income-tax---

----Reference---Question of law---Repeal and savings ---Reassessment-- Notices under 1922 Act served after April 1, 1962---Proceedings commenced whether valid---Depends on meaning of word "issued" in S.297(2)(d)(i), the saving provision---Question of law arises---Indian Income Tax Act, 1961, Ss.256 & 297(2)(d)(i)---Indian Income Tax Act, 1922, S.34.

The meaning of the word "issued" is to be construed in the context and the setting in which it occurs so that its meaning may vary depending on the context. The meaning of the word "issued" occurring in section 297(2)(d)(i) of the Income Tax Act, 1961, cannot be treated as concluded by the decision of the Supreme Court in Banarsi Debi v. I.T.O. (1964) 53 ITR 100.

Upadhyaya (R.K.) v. Shanabhai P. Patel (1987) 166 ITR 163 (SC) rel.

Held accordingly, that where the Appellate Tribunal had held that notices of reassessment under section 34 of the Indian Income-tax Act, 1922, served on April 10, 1962, after the coming into force of the 1961 Act and the proceedings commenced pursuant thereto were invalid, the question of law as to the meaning of the word "issued" occurring in section 297(2)(d)(i) of the Income Tax Act, 1961, arose out of the order of the Tribunal and that question was not concluded by the decision of the Supreme Court in Banarsi Debi's case (1964) 53 ITR 1(X? (SC) and the High Court had to call for a statement of case on the question from the Tribunal.

Banarsi Debi v. ITO (1964) 53 ITR 100 (SC) ref.

Decision of the Gujarat High Court reversed.

Dr. S. Narayanan, Senior Advocate (Ms. A. Subhashini, Advocate with him) for Appellant.

S. Sukumaran, Advocate (of J.B. Dadachanji & Co., Advocates) for Respondent.

JUDGMENT

These appeals by special leave are against the common order dated March 8, 1976, rejecting three applications Nos.68, 69 and 70 of 1975 made by the appellant under section 256(2) of the Income Tax Act, 1961, for an order directing the Income-tax Appellate Tribunal to state a case and refer the question of law arising out of the Tribunal's order for the decision of the High Court. The question of law is as under:---

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that notices served on April 10, 1982, under section 34 of the Indian Income Tax Act, 1922, after the coming into force of the Income-tax Act, 1961, and the proceedings commenced in pursuance of the said notices and the orders passed therein were invalid and bad in law?"

The High Court rejected these applications taking the view that the matter was concluded by a decision of this Court as indicated in the Tribunal's order rejecting the appellant's applications made under section 256(1) of the Act wherein it was stated that the question of law is concluded by the decision in Banarsi Debi v. ITO (1964) 53 ITR 100 (SC).

Having heard both sides we are of the opinion that the High Court as well as the Tribunal were in error in taking the view that the question of law is concluded in the present case by the decision in Banarsi Debi v. ITO (1964) 53 ITR 100. The decision of this Court in Banarsi Debi was considered and explained in a subsequent decision of this Court in R.K. Upadhyaya v. Shanabhai P. Patel (1987) 166 ITR 163. It was pointed out that the meaning of the word "issued" is to be construed in the context and the setting in which it occurs so that its meaning may vary depending on the context. The question involved for decision in the present case is the meaning of the word "issued" occurring in section 297(2)(d)(i) of the Income Tax Act, 1961. This question of law arises out of the Tribunal's order and cannot be treated as concluded by the decision of this Court in Banarsi Debi v. ITO(1964) 53 ITR 100 as stated by the Tribunal as well as the High Court.

For the aforesaid reasons, these appeals are allowed. The impugned orders are set aside. The High Court is required to direct the Tribunal to state a case and refer to it the aforesaid question of law for its decision.

Not costs.

M.B.A./2296/TAppeals allowed.