LALLOOMAL DALAL Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) BY this petition under Article 226 of the Constitution, the petitioner seeks the issue of a writ of certiorari to quash a notice of demand dated 25-3-1958, which included the demand for a sum of Rs. 7265-11-0 levied upon the petitioner by way of interest under Section 18A(6) of the Income-tax Act. This demand is challenged on two grounds: The first ground urged by learned counsel for the petitioner was that initially the notice of demand for payment of advance income-tax under Section 18A(1) of the Act was void in law because the demand in that notice was based on the last completed assessment of the assessee but in that demand his income from two firms of which he was a partner was taken to be the same as had been included in his last completed assessment and there was no substitution for that amount of the share of his income as calculated on the basis of subsequent completed assessments of those firms.

(2.) THE second ground, on which this petition was pressed on behalf of the petitioner, was that the Income-tax Officer could have given to the petitioner the benefit of the fifth proviso to Section 18A(6) of the Income-tax Act read with Rule 48 of the rules framed under that Act. In that proviso, it is laid down that