D N DUTTA Vs. INCOME TAX INVESTIGATION COMMISSION

JUDGEMENT

(1.) THE following Judgment of the court was delivered by :

(2.) THIS is an appeal by special leave against the report of the Income-tax Investigation Commission made in R. C. No. 332A and the orders passed thereon by the Central government dated 19/11/1949 and No 21/11/1949, the former under S. 8(2) and the latter under S. 8A(1) of the Taxation on Income (Investigation Commission) Act, Act XXX of 1947 (hereinafter to be referred as the Act). The appellant is Debendra Nath Dutta and the respondents are the Income-tax Investigation Commission constituted under S. 3 of the Act (hereinafter referred to as the Commission) and the Union of India. The facts giving rise to the appeal are that Captain N. N. Dutta, a brother of the appellant was the Managing Director of a concern called the Bengal Immunity Co. Ltd. During the last war he made large profits which were neither disclosed to nor detected by the Income-tax Department and thus escaped Income-tax on what may be termed 'concealed income'. On 23/03/1949, the Commission made a report to the central government under S. 5(4) of the Act asking for reference to itself of the case of Captain N. N. Dutta. Almost simultaneously the Commision directed a search to be made of four premises belonging to or in the occupation of Captain N. N. Dutta and his relations as a result of which complete sets of books containing receipts and disbursements of secret profits made by Captain N. N, Dutta came into the possession of the Commission and thus the case of Captain N. N. Dutta came to be investigated after reference to the Commission by the central government. THIS case was R. C. No. 332A. Captain N. N. Dutta at the time of search was away from Calcutta and after his return he offered to make full disclosure and agreed to pay whatever tax the Commission would find due from him but a few days after this offer i.e., on 6/04/1949, he died leaving brothers, nephews and nieces who are shown in the following pedigree table:

(3.) ON 15/04/1950, the appellant applied to the Commissioner of Income-tax, West Bengal, under S. 8(5) of the Act for a reference to the High court of Calcutta of 15 questions of law which ultimately were reduced to three. As there were 16 assessment orders the appellant was asked by the Commissioner to submit 16 applications which he did but by an order dated 3/10/1951, he rejected the applications as in his opinion no question of law arose out of the 'various assessment orders. The appellant 'then applied to the High court of Calcutta under S. 8(5) of the Act read with S. 66(2) of the Income-tax Act and Rules were issued by the High court but on 3/03/1952, they were discharged. Against this order the appellant applied to this court for special leave but on September 28, 1953, leave was refused. In his affidavit the appellant has stated that this court had observed that the appellant's proper remedy was for special leave to appeal against the decision of the Commission contained in their report of 16/11/1949. We have verified from the records of this court that the only order made by this court was refusing to grant special leave and there is no such observation as the appellant has mentioned in his appeal, affidavit and statement of case. The appellant then obtained special leave against the report of the Commission dated November 16, 1949, and the orders made thereon and that is how this appeal has come before us.