SRIRAM JHABURMULL Vs. S C DAS GUPTA

JUDGEMENT

(1.) This is an appeal from an order of Sinha J., dated 27-1-1954, by which he discharged a Rule issued by himself under Article 226 of the Constitution, requiring the respondents to show cause why the records of a certificate proceeding started against the appellant should not be brought up to this Court in order that the said proceeding and all orders passed therein might be quashed by a writ of certiorari. There were prayers for other reliefs as well, but it is not necessary to refer to them.

(2.) Broadly stated, the facts are as follows: The assesses is a Hindu undivided family. For the chargeable accounting period 26-3-1942, up to 13-4-1943 it filed a return and showed profits below Rs. 25,000/. On what date the return was filed does not appear. On 10-9-1947, the Excess Profits Tax Officer made a provisional assessment under Section 14A, Excess Profits Tax Act and determined the tax payable by the assessee at Rs. 6,00,000/-. On what profits that tax was computed does not appear, in pursuance of the provisional assessment thus made, a demand notice was issued on the assessee on 10-10-1947, but It defaulted to make any payment. On 10-3-1948, a requisition under Section 46 (2), Income-tax Act, was sent to the collector of 24-Parganas and on the 5th of May following, the Oeruncate Omcer med a certificate-under Section 4, Public Demands Kecovery Act. Ttiat case, we are informed, was Case no. 2003 I. T.747-48. Execution proceedings on the basis of the certificate were commenced on 17-12-1948, but whether any amount was realised, does not appear. On 31-1-1949, the Excess Profits Tax Officer made a final assessment whereby he determined the excess profits of the assessee at Rs. 13,58,338/- & the tax payable thereon at Rs. 10,86,670-11-0. This amount was made up of two sums, namely Rs. 9,05,558-11-0 which was the tax proper and Rs. 1,81,112-0-0 which was the compulsory deposit. A requisition under Section 46 (2), Income-tax Act, on the basis of the regular assessment was made on-14-2-1950, and on the 10th of March following a certificate was filed for the recovery of Rs. 4,86,670-11-0. This sum, it will be noticed, was the balance of the sum of Rs. 10,86,670-11-0 determined as the tax payable at the final assessment, upon the deduction therefrom the amount of Rs. 6,00,000/- which was the tax determined payable at the provisional assessment. The execution case filed on the basis of the second certificate was No. 502, I. T./49-50.

(3.) On 26-12-1950, the first certificate, that is to say, the certificate filed on the basis of the provisional assessment, was put to execution a second time. It would seem that various claims by third parties were made before the Certificate officer in the course of the first execution proceeding and it was found unprofitable to pursue it any further. We are informed that the last order made in the first execution case was made on 18-5-1949, and thereafter nothing else happened.