HIRJIBHAI TRIBHUWANDAS Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) THIS is a Letters Patent Appeal against the order of Kotval J. , in Miscellaneous petition No. 466 of 1955.

(2.) THE appellant used to carry on business in the State of Nandgaon and did so during the years 1946-47, 1947-48 and 1948-49. At that time, the provisions of the Indian Income-tax Act, 1922, were applicable to the Nandgaon State on account of the extension of that Act to the State in the year 1942. The appellant was assessed to income-tax for the above years under the said act by three separate orders of the Income-tax Officer, dated respectively 29-12-1947, 9-11948 and 29-3-1949, and the tax was duly realised by the State authorities. The State merged with Madhya Pradesh with effect from ]st August 1949 by the state Merger (Governors' Provinces) Order, 1849, end by the Taxation Laws (Extension to Merged States and Amendment) Act 1949 (hereinafter referred to in the judgment as the Taxation Laws Act) the Indian Income-tax Act was extended to the State of Nandgaon with effect from 1st April 1949. In the years 1954 and 1955, the Income-tax Officer issued three separate notices to the appellant under section 34 of the Indian Income-tax Act for re-assessment of tax for the very same -years. The petitioner contested the validity of the notices under Article 226 of the constitution. His petition was heard by Kotval J. , and was dismissed.

(3.) THE Taxation Laws Act repealed the Income-tax Act applicable to the State with the only saving in Section 7 as below :