MURLIDHAR JALAN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS is an application under article 226 of the Constitution of India praying for - (a) a writ of mandamus calling upon the respondents to withdraw, cancel or forbear from giving effect to the notices issued against the applicant under section 46 (5A) of the Income-tax Act; (b) a writ of certiorari calling upon the respondents to send for the records of the case and the proceedings be thereafter quashed; (c) a writ of prohibition calling upon the respondents to cancel or to forbear from giving effect to or in any way taking any steps in respect of the notices issued under section 46 (5A) of the Income-tax Act.

(2.) THE petitioner carries on business and is regularly assessed to income-tax under the Income-tax Act, hereinafter called the Act. Under section 5 (4) of this Taxation on Income (Investigation Commissioner) Act, 1947, the case of the petitioner was referred to the Income-tax Investigation Commission. An application was then made under section 8A of the said Income-tax Investigation Commission Act, and the case of the petitioner was settled. THE total quantum of income-tax alleged to have escaped assessment was estimated by the Commission at Rs. 19,81,302 and the amount which was found payable under the terms of the settlement was determined at Rs. 14,77,644.

(3.) THE Income-tax Officer, Dibrugarh, issued three notices under section 34 (1A) of the Income-tax Act for the assessment years 1944-45, 1945-46 and 1946-47 against the applicant and proceeded to assess income, profits or gains of the petitioner for each of the aforesaid three years. Under section 34 (1B) of the Act the petitioner applied to the Central Board of Revenue for settlement of the dispute relating to the assessment for the aforesaid years.