DEEPCHAND DAGA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) BY this petition under articles 226 and 227 of the Constitution, the petitioner, Deepchand Daga, applies for a writ in the nature of certiorari for quashing a notice dated 18th June, 1965, served by the Income-tax Officer, ' C'-Ward, Raipur, upon the Hindu undivided family "Deepchand Phoolchand Daga, Raipur ", under the provisions of Section 148 of the Income-tax Act, 1961 (Act 43 of 1961), for a writ in the nature of prohibition to restrain the Income-tax Officer from proceeding with the threatened assessment, and for an appropriate writ, direction and order asking him to withdraw the said notice.

(2.) THE facts leading to this petition may be shortly stated. On 19th September, 1956, the customs authorities seized 528 tolas, 112 grams of gold in the shape of ingots after it was brought to the National Refinery, by M/s. Poonamchand Gulabchand, Bombay, for purposes of remelting, acting on prior information that smuggled gold was being taken from Raipur for that purpose. THE gold was sent to Bombay by M/s. Lalchand Santoshkumar, Raipur, for disposal. THE carrier of the gold from Raipur was an employee of that firm who was asked to bring sickas in exchange. THE Collector, Central Excise and Customs, Bombay, by his order dated 4th January, 1958, confiscated the gold, under Section 167(8) of the Sea Customs Act 1878, read with Section 23A of the Foreign Exchange Regulation Act, 1947, holding that the gold under seizure was of smuggled origin, and that it belonged to M/s. Lalchand Santoshkumar, Raipur. On appeal, the Central Board of Revenue, however, released the gold to that firm giving it a benefit of doubt. THEreafter, M/s. Lalchand Santoshkumar, Raipur, admittedly had the gold sold in Bombay.

(3.) THE impugned notice to the Hindu undivided family " Deepchand Phooichand Daga ", is in the following terms :