MADANGOPAL KABRA Vs. UNION OF INDIA

JUDGEMENT

(1.) This is a test case under the Indian Income-tax Act. The petnr. Madangopal Kabra resides & carries on business in the district of Jodhpur in the United State of Rajasthan where income-tax had not been levied prior to 1-4-1960. In the Rajasthan Gazette dated 13-5-1950, the following notice was published:

(2.) Underneath the notice were published the names of various Income-tax Officers with their addresses & jurisdictions. Thereafter, on 7-8 1950, a notice was served upon the petnr. requiring him to produce his account books on 118-1950 in connection with the income-tax assessment. The constitution of India came into force on 26-1-1950 giving the Dominion Parliament power to legislate in matters relating to income-tax for the whole of India, while according to the Finance Act of 1950, Rajasthan became taxable territory from 1-4-1950. The petnr. has approached this Ct. with an appln, under Article 226, Const. Ind. objecting to his income being assessed to income-tax which accrued prior to 1-4-1950 & has based it on two principal grounds, namely: (1) That Rajasthan became taxable territory on 1-4-1950 & therefore, income accruing or arising before that date was not assessable to income-tax. (2) That the Dominion Parliament did not make any law authorizing taxation on income accruing prior to 1-4-1950 & had no jurisdiction to make any law relating to the imposition of income-tax in Rajasthan prior to 26-1-1950.

(3.) He accordingly prayed that the Union of India be restrained by means of a writ of mandamus, or certiorari or an appropriate writ, direction or order from taking any action under any provision of the Income-tax Act for making any assessment of such a tax or for levying & realising the same on the income which accrued to the petnr. prior to 1/4/1960 & further be directed to direct its income-tax Officers posted in Rajasthan not to harass the petnr. or to demand any account-books or other information for the purpose of making any assessment or to make any such assessment or realize the amount from the petnr.