C P KRISHNA IYER Vs. DISTRICT COLLECTOR TRICHUR

JUDGEMENT

(1.) The petitioner is a merchant doing business in Bombay and is now residing in his native village at Chalakudi. Respondents 1 to 3 are respectively the District Collector, Trichur, the Deputy Collector (Income Tax), Ernakulam and the Tahsildar, Mukundapuram. In 1947 the petitioner started a partnership business with three others in Bombay. The said business was done in Bombay as well as in Collem (Goa) in Portugese Territories. In 1950 the partnership was dissolved and the petitioner took over the entire business. Thereafter he continued the business at the same places as the sole proprietor. Since December 1953 on account of restrictions regarding travel from Indian Territories to the Portugese Territories and by reason of prohibition and restriction for remittance of money from Goa to India he could not continue the business in Goa and had to leave large assets and amounts belonging to the business at Goa without being able to take them over to the Indian Territories.

(2.) For the assessment year 1950-51 corresponding to the account year ending on the 31st March 1950 the Income Tax Officer, Bombay passed an assessment order on 23-12-1954 under S.23(3) of the Income Tax Act, 1922 determining the total income of the partnership firm at Rs. 3,86,669/- the petitioners share of the income being Rs. 1,93,334/-. On appeal by the petitioner to the Appellate Assistant Commissioner, Bombay the total income of the firm was reduced to Rs. 3,01,261/- and the petitioners total income was reduced to Rs. 1,07,897/-. In pursuance of that order the Income Tax Officer by his order dated 16-4-1957 determined the petitioners total income for 1950-51 at Rs. 89,928/-. On the same day the Income Tax Officer served on the petitioner an assessment form showing that he was liable to pay an amount of Rs. 42,801. 69 nP. by way of Income Tax and supertax for 1950-51. The said order and the assessment form are marked as Ext. P5 series. The notice of demand under S.29 of the Act for the said amount dated 17-6-57 was also served on the petitioner which is marked as Ext. P6.

(3.) For the assessment year 1952-53 corresponding to the account year 31st March 1952 the Income Tax Officer, Bombay assessed the petitioner to pay an amount of Rs. 4,465-5-0 by way of income tax and surcharge in respect of his business in Goa and served on him a demand notice under S.29 of the Income Tax Act dated 6-11-1956 for the payment of the said amount within ten days. The said demand notice is marked as Ext. P7.