INDRA AND COMPANY Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS is writ petition under article 226 of the Constitution by which the validity of a notice, issued by the Income -tax Officer, 'A' Ward, Jodhpur, on April 19, 1963, under section 274 read with section 271 of the Income -tax Act, 1961, to the petitioners -assessee is challenged.

(2.) PETITIONER No. 1 - Messrs. Indra and Company - is a registered firm which has Jiwanlal and Murlidhar as its partners. Petitioners are assessee in 'A' Ward of the Income -tax department, Jodhpur; their accounting year commences on 'Deepawali' every year. Before the commencement of the Income -tax Act, 1961, they were served with a notice under section 22(2) of the Income -tax Act, hereinafter to be referred as the 'old Act', on May 30, 1961, for the assessment year 1961 -62. The petitioners, however, did not file the returns in compliance with the notice till the Income -tax Act, 1961, came into force on April 1, 1962. The 1961 Act will, hereinafter, be referred as the 'new Act'. Eventually, they filed their returns on December 28, 1962. The Income -tax Officer, 'A' Ward, completed the assessment on April 19, 1963, in accordance with the provisions of the new Act, but while doing so, he issued a notice to the petitioners under section 274 read with section 271 of the new Act, to show cause why penalty be not imposed on them for their failure, to submit the returns in time in pursuance of the notice dated May 30, 1961, issued under the old Act. On receipt of the notice the petitioners made a representation to the Income -tax Officer wherein they pointed out their difficulties in submission of their returns in due time, and also raised a legal objection that it was not competent to the Income -tax Officer to invoke the provisions of the new Act for initiating any action for the imposition of the penalty under the new Act. But, as this representation was not accepted, they have filed the present writ petition.

(3.) THE writ petition has been opposed on behalf of the respondents.