G EKAMBARAPPA Vs. EXCESS PROFITS TAX OFFICER BELLARY

JUDGEMENT

(1.) This appeal brought, by special leave, from the judgment of the Mysore High Court, dated March 20 1962 dismissing writ petition No. 109 of 1960. The appellants had prayed therein for the grant of writ for quashing a notice dated January 16, 1960 issued by the respondent under S. 15 of the Excess Profits Tax Act, 1940 (Act XV of 1940), hereinafter called the 'Act', calling upon the appellants to submit a return of the standard profits and the profits actually made during the chargeable accounting period from October 30, 1943 to October 30, 1944 on the ground that the profits had been under-assessed.

(2.) The appellants carried on a business constituting themselves into a partnership called "Guduthur Thimmappa and Brothers" in 1934. On the date of commencement of the business the partners were G. Thimmappa, G. Ekambarappa and G. Padmanabhan, each of the partners representing their respective joint families. The business of the firm was in Bellary town and the partners of the firm were residents of Bellary town during the period the firm was carrying on business. The firm was dissolved on October 16, 1944. Thimmappa, one of the partners, died on April 13, 1955. For the chargeable accounting period from October 30, 1943 to April 30, 1944, the Excess Profits Tax Officer had taken steps to assess the "escaped" profits of the firm. He issued the necessary notices to G. Padmanabhan and G. Ekambarappa as the partners of the dissolved firm He also issued notices to G. M. Prabhu and G. Lakshmidevamma as the representatives of G. Thimmappa. The contention of the appellants before the High Court was that as from November 1, l956 the Act must be deemed to have been repealed so far as Bellary district is concerned and, therefore, the respondent was not competent to take any proceedings for determining the escaped income under S. 15 of that Act. The High Court rejected the contention on the ground that, though the Act stood repealed by reason of the inclusion of Bellary district in Mysore State, the liability to pay tax on the escaped profits continued by virtue of S. 6 of the General Clauses Act.

(3.) The question to he considered in this appeal in whether the appellants continued to be liable to be proceeded against under S. 15 of the Act on the profits which had escaped taxation.