CITY TOBACCO MART Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioners in these four petitions pray under the provisions of article 226 of the Constitution for the issue of a writ of prohibition against the respondents from proceeding with the enquiry pursuant to the notice under section 34 of the Mysore Income -tax Act or in the alternative for a writ of certiorari for quashing the said notice.

(2.) THE impugned proceedings were initiated by the Income -tax Officer Urban Circle, and by the Special Income -tax Officer, Bangalore, on 15th March, 1951, 29th March, 1952, 2nd December, 1953, and 24th February, 1954, respectively for the purpose of the Mysore Income -tax Act, the escaped income of the petitioners. The petitioners contend that the Income -tax Officer had no jurisdiction or authority to start such proceedings. The argument in support of this contention is two -fold :

(3.) THE said Committee made its report of the Government of India on 27th July, 1949, in which it recommended among other matters that when the Federal Financial Integration came into effect, the items of Central Revenues specified on page 13 of the Part I of the Report should be taken over from the States by the Central Government - Item 2 in that list being income -tax. On the date of this report, income -tax in Mysore was being levied and collected under the then existing State law, viz., the Mysore Income -tax Act, 1923.