PRATAPMAL Vs. INCOME TAX OFFICER JODHPUR

JUDGEMENT

(1.) AN application has been made by Pratap Mal under Article 226 of the Constitution of India for issue of a writ or direction to the Income-tax Officer, Jodhpur Division. In this application a prayer was made for issue of a temporary injunction restraining the Income-tax Officer from making any assessment of income-tax on the income for the year 1949-50 on any resident of Jodhpur Division, including the applicant. AN ad interim injunction was issued to the opposite party restraining him from proceeding to assess income-tax on the applicant, and a notice was also issued of this ad interim injunction. A further notice was issued to the opposite party asking him to show cause why an ad interim injunction be not issued to him restraining him from proceeding with the assessment of income-tax on all the residents of Jodhpur Division.

(2.) THE opposite party has appeared in answer to the notices issued to him, and opposes the issue of an ad interim injunction restraining him from assessing income-tax on all the residents of Jodhpur Division. Further, the opposite party also prays that the ad interim injunction issued restraining him from proceeding to assess income-tax on the applicant be suitably modified, and he should be allowed to proceed with the examination of the account books of the applicant for the year 1949-50, though it is said on his behalf that he would not assess the income-tax for that year.

(3.) WE now turn to the case of the applicant himself. The main contention of the learned counsel for the opposite party in this connection is based on section 22 (4) of the Income-tax Act, which deals with the return of income, and reads as follows: - "the Income-tax Officer may serve on any person who has made a return under sub-section (1) or upon whom a notice has been served under sub-section (2) a notice requiring him, on a date to be therein specified, to produce, or cause to be produced, such accounts, or documents as the Income-tax Officer may require : Provided that the Income-tax Officer shall not require the production of any accounts relating to a period more than three years prior to the previous year. " Learned counsel contends that as a notice has been issued already to all the residents of Jodhpur Division to file their returns of income for the previous year, i. e. , 1950-51, the Income-tax Officer can require those who submit a return to produce their account books of three years previous to 1950-51. As such this Court should not now pass an ad interim injunction restraining the Income-tax Officer from demanding the account books for the year 1949-50, because that would be going against the provisions of sec. 22 (4) and would, therefore, be ineffective order. WE are of opinion that there is great force in this contention, and this Court should not now prohibit the Income-tax Officer from demanding production of the account books for the year 1949-50, as that would be interfering with the legitimate powers of the Income-tax Officer under section 22 (4 ). Interest of justice would, in our opinion, be sufficiently served if we restrain the Income-tax Officer from actually assess-ing income-tax on the income of the year 1949-50 under section 23 of the Income-tax Act. WE, therefore, modify the ad interim injunction already issued to the opposite party, and order him not to assess income-tax on the income of the year 1949-50, pending disposal of this application.