LAKSHMINARAYANA CHETTY Vs. I T O NELLORE

JUDGEMENT

(1.) THE Order of the Court was delivered by the Hon'ble THE Chief Justice. This is an application under Article 226 of the Constitution of India for issuing a writ of certiorari to quash the orders of the First Additional Income Tax Officer, Nellore dated 20-3-1954, and 31-3-1954. THE assessees are members of a Hindu undivided family. On 18-3-1948, the Income Tax Officer, Nellore assessed them to income-tax for the assessment year 1947-48. In doing so, he had taken into consideration a sum of Rs. 6,000/- as the share of the income of the joint family from the firm of C. P. V. Kotaiah Chetty & Co. Madras (Chillies Department). In due course, the assessees paid the income-tax assessed on them. THE assessment on the firm of Messrs. C. P. V. Kotaiah & Co. was completed only on 31-7-1951. By reason of that assessment the share of the profits of the assessees' family for 1947-48 was found to be Rs. 21,659 instead of Rs. 6,000 which was the sum included in the assessment of the joint family by the assessment order dated 18-3-1948i On 15-2-1954 the Income-tax Officer gave the assessees notice to state their objections why the previous assessment dated 18-3-1948 should not be rectified under section 35 of the Income-tax Act (hereinafter referred to as the Act) as amended by the Income-tax (Amendment) Act 1953 (hereinafter referred to as the Amending Act). - THE assessee objected to the rectification on the ground, among others, that the said Act was not retrospective and would not affect the assessment completed prior to 1st April 1952. THE Income-tax Officer rejected the objections and called upon the assessees to pay the additional tax before 10-5-1954, Learned Counsel for the assessees contends that the Amending Act of 1953 is not retrospective and therefore it cannot be invoked to reopen an assessment completed before 1st April 1952, whereas the learned Advocate-General argues that the amendment is only declaratory of the pre-existing law and therefore on the basis of the amendment even a completed assessment can be reopened. THE relevant provisions of the Act may usefully be extracted at this stage :