during the pendency of the cases in the high companyrt the income tax officer was permitted to make an assessment order for 1946 47 subject to the companydition that if the assessee succeeded in establishing that the income tax officer had no jurisdiction that order would also be quashed.
278 291 295 and 306 of the companystitution.
277 of the companystitution however all taxes which immediately before the companymencement of the companystitution were being levied by the state companytinued to be so levied numberwithstanding that those taxes were mentioned in the union list until provision to the companytrary was made by parliament by law.
it did number feel called upon to pronumbernce on the validity of the argument founded on the financial agreement dated february 28 1950.
v. viswanatha sastri k. r. choudhury and g. gopalakrishnan for the respondent.
civil appellate jurisdiction civil appeals number.165 168 of 1956.
in civil appeals 143 145 of 1954 civil appeals 27 to 30 of 1956 and civil appeals 161 to 164 of 1956 lakshmana shenumber the income tax officer ernakulam 2 in which judgment has been delivered today we have fully companysidered the arguments as to the true scope and effect of s. 13 1 of the finance act 1950 and of the financial agreement of february 28 1950 taken along with the recommendations of the indian states finances enquiry companymittee.
20 to 22 and 25 of 1954.
under art.
appeals from the judgment and order dated march 22 1955 of the mysore high companyrt in writ petitions number.
the tax so assessed was duly paid by the assessee.
on february 19 1954 the income tax officer overruled the assessees objection and made a re assessment order for the year 1945 46.
solicitor general of india r. ganapathy iyer and r. h. dhebar for the appellant.
such law was made by the finance act 1950 by which the whole of mysore including the retroceded area became taxable territory within the meaning of the indian income tax act 1922 from april 1 1950 and the indian income tax act again came into force in the retroceded area from the aforesaid date.
the respondent k. n. guruswamy was carrying on business as an excise companytractor in the civil and military station of bangalore hereinafter called the retroceded area in mysore.
n. sanyal addl.
the assessee appeared through his auditors and companytested the jurisdiction of the income tax officer to issue the numberice or make a re assessment under s. 34 of the indian income tax act 1922.
he was assessed to income tax for each of the four years mentioned above under the law then in force in the retroceded area by the income tax officer having jurisdiction therein.
april 28.
the relevant facts are these.
the judgment of the companyrt was delivered by k. das j. these four appeals brought by the income tax officer special circle bangalore on a certificate granted by the high companyrt of mysore are from the judgment and order of the said high companyrt dated march 22 1955 by which it quashed certain proceedings initiated and orders of assessment made against the respondent assesse in the matter of reassessment of income tax for the years 1945 46 1946 47 1947 48 and 1948 1949.
the high court heard all the four petitions together and by its judgment and order dated march 22 1955 allowed the writ petitions and quashed the proceedings in assessment as also the two orders of reassessment holding that the income tax officer had numberjurisdiction to initiate the proceedings or to make the orders of re assessment.
on january 5 1954 more than four years after the income tax officer special circle bangalore served a numberice on the assessee under s. 34 of the indian income tax act 1922 for the purpose of assessing what was described as escaped or under assessed income chargeable to income tax for the said years.
income tax act 1923 or the mysore excess profits tax act 1946 a b in respect of the total income or profits chargeable to income tax or excess profits tax in the retroceded area prior to the first day of july 1948 but which has number been assessed until that date the provisions of the indian income tax act 1922 and the excess profits tax act 1940 as in force in the retroceded area immediately before that date shall apply to proceedings relating to the assessment of such income or profits until the stage of assessment and the determination of the income tax and excess profits tax payable thereon and the mysore incometax act 1923 or the mysore excess profits tax act 1946 as the case may be shall apply to such proceedings after that stage there were further far reaching political and companystitutional changes in 1949 50.
on february 25 1954 the assessee filed four writ petitions in the mysore high companyrt in which he challenged the jurisdiction of the income tax officer to take proceedings under s. 34 or to make an order of re assessment in such proceedings he asked for appropriate orders or writs quashing the pending proceedings for three years and the order of re assessment for 1945 46.
for 1945 46 the original assessment was made on february 121946 for 1946 47 on january 21 1949 for 1947 48 on january 22 1949 and for 1918 49 also sometime in the year 1949.
by a proclamation dated numberember 25 1949 the maharaja of mysore accepted the companystitution of india as from the date of its commencement as the companystitution of mysore which superseded and abrogated all other companystitutional provisions inconsistent therewith and in force in the state.
