MAYURBHANJ STATE BANK Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under S. 66(1) of the Indian IT Act in respect of a question of law arising out of the order of the Tribunal of Income tax dt. 26th Aug., 1953. The question of law referred is as follows :

(2.) IT is to be observed here that the Mayurbhanj State itself merged into the State of Orissa. The contention on behalf of the bank of the Mayurbhanj State is that the bank having been completely owned by the State of Orissa which has fully approved the provisions of the order constituting the bank, no tax is payable as provided for under Art. 289 of the Constitution. Clause (1) of the article runs as follows :

(3.) THERE is a further difficulty also in the way of Mr. Mohapatra in respect of his contention when he refers to the question which we have got to answer. The question is only to the effect "whether on the facts and circumstances of the case the Orissa State is entitled to refund of tax paid." It was agreed at all stages that the application was by the State of Orissa and that the advantage will go to the benefit of the Orissa State. This contention of Mr. Mohapatra therefore will fail.