CHHAGANMAL AGARWALLA Vs. INCOME TAX OFFICER A WARD

JUDGEMENT

(1.) On March 14, 1962, the Income-tax Officer, "E" Ward, Dist. IV(3), made an order of assessment under Section 23(3) of the Indian Income-tax Act, 1922 (hereinafter referred to as "the old Act"), for the assessment year 1961-62 against the petitioner. On March 31, 1966, an order of assessment was passed against the petitioner's partnership firm, Jaswantrai & Bros., for the assessment year 1961-62. The respondent No. 1, namely, the Income-tax Officer, "A." Ward, Dist. III(3), Calcutta, gave to the petitioner on the 6th May, 1966, a notice under Section 154/155 of the Income-tax Act, 1961 (hereinafter referred to as "the new Act"), for the assessment year 1961-62. The purpose of this notice was to rectify the petitioner's assessment made on the 14th March, 1962, upon the assessment of the petitioner's firm on the 31st March, 1966. Needless to say that, by this rectification, the petitioner's tax liability was sought to be increased. On the 12th May, 1966, the respondent No. 1 passed an order against the petitioner under Section 154 of the new Act for the assessment year 1961-62. On January 9, 1966, the petitioner was served with a notice of demand under Section 156 of the new Act for the assessment year 1961-62 pursuant to the aforesaid notice under Section 154. On the 4th July, 1966, the respondent No. 1 gave notice to the petitioner under Section 222(1) of the new Act requiring the petitioner to show cause why a penalty should not be imposed for non-payment of tax. Eventually, on December 30, 1967, the petitioner was served with a notice of demand from the Tax Recovery Officer, Calcutta, with respect to the certificate for Rs. 74,348.85 forwarded by the Income-tax Officer. The Tax Recovery Officer on the same day, namely, the 30th December, 1967, made an order prohibiting and restraining the petitioner from making any transfer of his shares in the Transport Corporation of India (P.) Ltd.

(2.) In the present application the notice under Section 154 read with section 155 of the new Act dated 12th May, 1966, the notice under Section 156 of the new Act dated 23rd May, 1966, the notice under Section 222(1) of new Act dated the 4th July, 1966, the notice of demand of the Tax Recovery Officer dated the 30th December, 1967, and the prohibitory order of the Tax Recovery Officer made on the 30th December, 1967, have all been challenged.

(3.) Mr. Bajoria, learned counsel for the petitioner, drew my attention to Section 297(2)(a) of the new Act, which runs thus : Notwithstanding the repeal of the Indian Income-tax Act, 1922 (XI of 1922) (hereinafter referred to as 'the repealed Act'),--