UNION OF INDIA Vs. MADAN GOPAL KABRA

JUDGEMENT

(1.) This is an appeal from an order of the High Court of Rajasthan directing by writ issued under Art. 226 of the Constitution that the Union of India, appellant herein, should not levy income-tax on the income of the respondent accruing arising or received in Rajasthan (excluding the area of the former covenanting State of Bundi) prior to April 1, 1950.

(2.) The respondent resides and carriers on business in the district of Jodhpur in Rajasthan which is one of the Sates specified in Part B of the First Schedule to the Constitution (hereinafter referred to as part B States). In May 1950 the respondent was required to file a return of his income for the previous year, that is the year ending March 31, 1950, for assessment to income-tax, and subsequently was also asked to produce the relevant account books before the Income-tax Officer, Jodhpur on August 11, 1950. Thereupon the respondent presented the petition, out of which this appeal arises, on August 23, 1950 invoking the jurisdiction of the High Court under Art. 226 of the Constitution for the issue of "a writ of 'mandamus' or 'certiorari' or other appropriate writ" directing the appellant not to take any action under the Income Tax Act, 1922. (hereinafter referred to as the Indian Act) as amended by the Indian Finance Act, 1950, for the assessment or levy of income-tax on the income which accrued or arose to the respondent or was received by him prior to April 1, 1950 on the ground that such income was not liable to be charged "under the provisions of any law validly in force in Rajasthan".

(3.) The petition was heard by a Division Bench of the High Court (Nawal Kishor and Kanwarlal Bapna JJ.) who accepted the petition and issued a writ as already stated, overruling sundry preliminary objections to which no reference need be made as they have not been raised by the appellant before us.