(1.) THE petitioner claims to be a Hindu Undivided family represented by Gajanand Pasari as its 'Karta'. It is being asseeseed to income -tax in Rajasthan ever -since its introduction, from the assessment year 1950 51. as the Income -tax Act was made applicable to the State with effect from April 1, 1950. The validity of the retrospective levy was successfully challenged by a writ petition in this Court. The Court judgment is dated January 16, 1951 and is reported in Madangopal Kabra v. Union of India It was however set aside on December 10, 1953 by a judgment of their Lordships of the Supreme Court reported in Union of India v. Madal Gopal Kabra : [1954]25ITR58(SC) .
(2.) THE petitioner has stated that as there was 'no Income -tax or any other law' in the State of Raja upto 31.3.50' requiring it to maintain books of account', it 'did not murrain any books of account upto 31.3.50' It has been stated that the petitioner prepared an inventory of its assets and liabilities on April 1, 1950 and started maintaining 'proper and regular booked of account and documents' with effect from April 1, 1950. It claims that it closed its frist accounting year on March 31, 1951 and found a net pre fit of Rs. 39 328 t0. It therefore voluntarily filed its return of income tax, along with the profit end loss account and the balance sheet which are on record as Annexure. A The assessment was completed by order Annexure B dated April 25, 1952. The petitioner filed the Subsequent returns also, so that its income upto the assessment year 1965 66 bad been assessed to income tax, and the return for the year 1966 67 was pending consideration on the date of the petition The sane was the position regarding the wealth tax, and the petitioner has stand that nothing was outstanding against it.
(3.) IN the meantime, the Income -tax Officer issued notice Annexure J dated November &, 1959 to the petitioner under Section 28(3) of the Income -tax Act, 1922 for its failure to comply with a notice under Section 22(4) requiring it to produce books of account end documents The petitioner gave explanation K, and the matter was dropped by order Annexure 1 dated July 1, 1960.