INCOME TAX OFFICER MADRAS Vs. BUDHA PICTURES MADRAS

JUDGEMENT

(1.) This appeal by special leave is directed against the judgment of the Madras High Court allowing the petition filed under Article 226 of the Constitution by Budha Pictures. Madras, respondent before us. The respondent had, inter alia, prayed for a writ of mandamus or such other appropriate writ, order or direction in the nature of a writ directing the 4th Income-tax Officer, City Circle V, Madras, to forbear from collecting from the respondent the sum of Rs. 20,000 in pursuance of his notices dated June 18, 1959, and March 21, 1961, issued under S. 46 (5-A) of the Indian Income-tax Act, 1922. These notices came to be issued in the following circumstances:

(2.) The respondent replied on June 26, 1959, as follows:-

(3.) The High Court, as we have already mentioned, hold that the Department was not entitled to call upon Budha Pictures Ltd., the respondent, to make good the sum of Rs. 20,000 already paid to Baliah as such payments did not contravene the notice under S. 46 (5-A) dated June 18, 1959. Section 46 (5-A) reads as follows: