COMMISSIONER OF INCOME TAX, MADRAS vs S. CHENNIAPPA MUDALIAR, MADURAI

The Supreme Court held that under Section 33(4) of the Income Tax Act, 1922, the Appellate Tribunal is required to decide appeals on their merits rather than dismissing them for default of appearance, as the language of the statute mandates a decision based on the correctness of the points raised. The Court found that Rule 24 of the Appellate Tribunal Rules, 1946, which allows dismissal for default, is ultra vires Section 33(4) and thus invalid. The appeal was allowed, reinforcing the necessity for the Tribunal to provide a substantive ruling on the merits of the case.