ANGLO FRENCH TEXTILES LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner-company was incorporated in Pondi-cherry in February, 1951, under the French laws that applied to the French Settlements in India at that time. It was subjected to income-tax under the Decret of 9th May, 1949, approving two deliberations of the representative assemply of the French Settlements in India. Under article 6 of the Decret, the profit taxable in the case of a company was the net profit arrived at after deducting expenditure incurred and depreciation written off.

(2.) IN accordance with the agreement between the Government of INdia and the Government of France, the administration of the French establishments in INdia was taken over by the Government of INdia from 1st November, 1954. Article 14 of that Agreement says:

(3.) IN this writ petition, the petitioner challenges the constitutional validity of the said "Taxation Laws (Extention to Union Territories) (Removal of Difficulties) Order No. 2 of 1970", hereinafter referred to as "the impugned order", as he cannot challenge the vires of the same in the appeals pending before the appellate authority. The challenge to the said impugned order has been made on the following grounds :