GRINDLAYS BANK LIMITED Vs. INCOME TAX OFFICER CALCUTTA

JUDGEMENT

(1.) This appeal by special leave is directed against the judgment of the High Court at Calcutta dated May 8 and 12, 1978 in so far as it directs the Income-tax Officer to make a fresh assessment in respect of the appellant.

(2.) The appellant is a banking company incorporated in the United Kingdom with its registered office at London. It carries on banking business in India, and is assessed under the Income Tax Act, 1961.

(3.) The appellant filed a return of its income for the assessment year 1972-73. During the assessment proceeding, the Income-tax Officer issued a notice under Section 142 (1) of the Income Tax Act requiring the appellant to produce certain account books and documents. The appellant applied against the notice to the High Court at Calcutta under Article 226 of the Constitution. A learned single Judge of the High Court did not accept the wide construction which the appellant sought to put upon the impugned notice, and construing it in specific limited terms he directed the appellant to comply with it. The appellant preferred an appeal in the High Court. Meanwhile, pursuant to the direction by the learned single Judge, the Income-tax Officer made an assessment order on March 31, 1977. Thereafter, the appeal was allowed by a Division Bench of the High Court by its judgment dated May 8 and 12, 1978, and the impugned notice under Section 142 (1) and the consequent assessment order were quashed. But while doing so, the Division Bench also directed this Income-tax Officer to make a fresh assessment. Aggrieved by that direction, the appellant applied for, and obtained, special leave to appeal, to this Court.