SETH R DALMIA Vs. UNION OF INDIA

JUDGEMENT

(1.) This judgment will dispose of six writ petitions bearing Nos. 663-D of 1965 to 668-D of 1965

(2.) All these petitions have been filed by Shri R. Dalmia challenging the validity and legality of notices served on him under section 148 of the Income-tax Act, 1961 apart from challenging the validity, legality and Constitutionality of Sections 147 and 148 of the Income-tax Act, 1961. Petitions bearing Nos. 663-664 and 665 of 1965 relate to notices served by respondent No. 3, the Income-tax Officer, on the petitioner in his individual capacity respectively for the Assessment Years 1950-51, 1951-52 and 1949- 50 the corresponding accounting years ending on 30th September, 1949, 30th September, 1950 and 30th September, 1948. Petitions bearing Nos. 666, 667 and 668 of 1965 are in respect of the assessment years 1949-50, 1951-52 and 1950-51 respectively and pertain to notices served on the petitioner as a member of an alleged association of persons comprising of R. Dalmia, J. Dalmia and S. P. Jain.

(3.) Briefly stated, the facts leading up to these petitions are that on returns of income being filed for the various assessment years, in accordance with the provisions of Indian Income-tax Act, 1922, the Iacome-tax Officer, Special Investigation Circle, Patna made assessments on the petitioner as an individual for the assessment years 1949-50, 1950-51 and 1951-52. Thereafter it appears, a Commission was appointed to go into the affairs of various companies with which the petitioner was allegedly associated. This Commission, commonly known as the Vivian Bose Commission, submitted a report. On facts allegedly disclosed in and by the report of the said Commission respondent No. 3 on being designated as the Income-tax Officer to deal with the assessment and re-assessment of the income of the petitioner, sought to proceed under the provisions of Section 147 of the Income-tax Act, 1961. He, therefore, issued two sets of notices to the petitioner under section 148 of the Income-tax Act, 1961, the first in respect of his income as an individual and the second set in respect of the petitioner's alleged income as a member of an association of persons. By these notices respondent No. 3 informed the petitioner that in his respective capacity as an individual or as a member of an association of persons income of the petitioner had escaped assessment for the relevant year to which each individual notice pertained and that the Income-tax Officer had reasons to believe that it was so. The petitioner was, therefore, notified to deliver to respondent No. 3 within 30 days of the date of service of the notice a return in the prescribed form of his income respectively as an individual or as a member of an association of persons for the relevant assessment year. The petitioner was further informed that the notice under section 148 of the Income-tax Act, 1961 was being served on him "after obtaining the necessary satisfaction of the Central Board of Direct Taxes New Delhi". The notices for the assessment years 1950-51, 1951-52 and 1949-50 (Writ petitions Nos. 663-D, 664-D and 665-D of 1965) were all dated 7th September, 1965 and were served on the petitioner as an individual on 8th September, 1965. The notices challenged in the other three petitions, which were served on the petitioner as a member of an association of persons were also dated 7th September, 1965 but were served on 11th September, 1965. Aggrieved by the service of these notices the petitioner field the present petitions.