SUKHLALL CHANDANMULL Vs. A C JAIN

JUDGEMENT

(1.) This is an application under Article 226 of the Constitution by Messrs. Seth Sukhlall Chandanmull, described as a Hindu undivided family governed by Mitakshara School of Hindu Law, and of which Indra Kumar Karnani is pleaded AS the Karta. In this application the petitioner asks for a Writ of Certiorari upon the Income-tax Officer, Companies District II, Calcutta, and the Union of India, represented by the Commissioner of Income-lux to quash the assessment proceedings.

(2.) The Income-tax Officer by his order dated 17-2-1956 assessed the income at Rs. 1,59,248/-, and it is alleged that he ignored the claim of the petitioner for the sum of Rs. 4,000/- as deductible allowance for earned income and disallowed a sum of Rs. 26,195-0-0 which was interest supposed to have been paid to Karnani Industrial Bank Ltd., for the overdraft taken by the petitioner from the Rank against security of property and that he is also supposed to have disallowed bad debts claimed by the petitioner as permissible deduction.

(3.) The main complaint of the petitioner is that in determining the sum payable by him on the basis of the assessment made, the Income-tax Officer applied the different rates of income-tax, surcharge and super-tax prescribed by the Finance Act of 1951 as applicable to the Finance Act, 1954 for the said assessment year. Dr. Pal appearing for the appellant has challenged the validity of progressive and graduated system of tax. His argument is that a progressive and graduated system of tax is unconstitutional. He has pressed no other point before me, and he has rightly and wisely not gone into disputed questions of fact.