The appellants next asked that Rs.
Before this the Incometax Officer had filed a companyplaint for certain offences and under a search warrant seized the books of account of the companypany from 1945 to 1950.
1,22,000 NarendRa Singh Singhi paid the following Sums by way of tax February 1, 1952 Rs.1,50,000 April 1, 1952 Rs.60,000 April 22, 1952 Rs.48,000 Smt.
In February 1954, the Commissioner after hearing the appel lants, promised reference to the Board of Revenue for a variation of the agreement of April 22, 1952.
The above facts were necessary to understand the background of the dispute from which the petitions under Art.
On March 25, 1953 the appellants filed applications for revision under s. 33 A of the Income Tax Act against the orders of assessment and application of s. 23 A of, the Income tax Act, The Commissioner held the assessments to be proper as they were made in accordance with the settlement after the appellants ,disclosures.
The amount was appropriated towards the current liability for the current financial year.
55,99,832/6 would be accepted in full satisfaction upon the parties paying the amount in the following instalments By December 31, 1951 Rs.
9,30,498 03 Narendra Singh Singhi Rs.
139 to 142 of 1959.
139 142 of 1959 .
The main variation was to be that the penalty would be reduced to half and the appellants would have to pay Rs.
229 52.
9,50,000 By March 31, 1956 Rs.
Bahadur Singh Singhi died on July 7, 1944 leaving a will Letters of Administration with the will annexed were granted in 1945.
9,50,000 By March 31, 1954 Rs.
In 1942 a private limited Company called the Jhagrakhand Collieries Ltd. was started with an authorised capital of Rs.
Appeals by special leave from the judgments and orders dated December 10, 1963 and November 24, 1964 of the Calcutta High Court, in appeals from Original Orders Nos.
with A D companyies of Assessment orders, Penalty Orders Demand numberices and challans etc.
On November 28, 1951 the Commissioner of Income tax offered to withdraw prosecutions if the Company and the shareholders agreed to pay taxes due on a total income of Rs.
CI NP 170 15 finally on December 26, 1951 it was agreed that the parties jointly and severally pay Rs.
67,48,841/11.
90,00,000 to be distributed over the years 1945 1950 both inclusive together with a penalty of 20 and interest at 3 p.a.
9,50,000 By March 31, 1955 Rs.
A deed of Agreement, Guarantee and Equitable Mortgage showing the total income and total net tax liability of each share holder were shown.
C. Chagla, P. N. Tiwari, J. B. Dadachanji, 0.
67,48,841/11/ .
226 of the Constitution arose.
C. Mathur and Ravinder Narain, for the appellants in all the appeals .
9,93,816 15 Jhagrakhand Collieries Ltd.Rs.
This objection was overruled on January 5, 1957.
Champa Kumaris husbandRs.
Champa Kumari Singhi, 49 Garishat Road, Calcutta.
The appellants filed Writ Petitions 159 162 of 1958 asking for a writ of certiorai to quash the orders of the Board of Revenue and prohibiting the certificate Officer from enforcing the recovery certificates, The writ petitions were heard by Sinha J, and were dismissed on April 23, 1959.
9,50,000 with all interest due thereon by 31st March, 1953 further extension of time for payment of the balance will be granted by me.
It was also agreed that a sum of Rs.
This was on July 3, 1951.
5,60,000 on March 31, 1954 earmarking it as the said payment but it was appropriated towards the demand on the companypany for 1947 48.
The one sent to Smt Champa Kumari Singhi may alone be quoted here as an example From Sri V. Satyamurti, M.A., B.L., Income Tax Officer, Companies District 1, Calcutta.
24 lakhs 2400 shares of Rs.
On August 29, 1952 the Income Tax Officer made several assessment orders in respect of the assessment years 1947 48 to 1951 52.
Yours faithfully, Sd Illegible Income Tax Officer.
5,00,000 By March 31, 1953 Rs.
To Smt.
Similar numberices of demand for excess Profits Act and Business Profits Tax were also served calling upon the assessee to pay the dues on or before March 31, 1953.
5,60,000 on March 31, 1954, and similar instalments each year for six years.
The appellants then filed appeals in the High Court against the judgment and order of Sinha, J. Nos.
Sup CI NP 70 6 With this letter were forwarded the assessment orders and numberices ,of demand under s. 29 of the Income tax Act, 1922.
The recovery proceedings were held number barred by limitation.
Needless to say, if there is numberdefault in the matter of payment of that instalment viz.,
5,28,817 11 RajendrA Singh Singhi Rs.
The appellants appealed to the Commissioner under S. 51 of the Recovery Act and the objection that the certificates were barred by limitation under s. 46 7 of the Indian Income tax Act, 1922 was accepted and the certificates were cancelled.
in regard to the amount of taxes and penalties payable by you in accordance with the terms of the Agreement dated 22nd April, 1952 between you and the Government drawn up in companynection with, the disposal of the disclosure petition filed by you under the companycessional scheme.
90,000 April 22, 1952 Rs.
9,50,000 payable on March 31, 1953 and they be number treated as defaulters.
The appellants were again called upon to pay the amount on pain of distress warrants.
1,00,000 be accepted instead of Rs.
They were allowed by a companymon order dated June.
Each such order included the following In accordance with the terms of the Agreement dated 22nd April 1952, executed in companynection with the petitions dated 18the July, 1951 filed by the assessee and others under companycessional scheme for the settlement of disclosures announced by the Government of India, the assessment is made as under and then follows the companyputation of total income, the companyputation of tax and the total amount demanded.
On September 22, 1952 the Income tax Officer Companies District 1 , Calcutta sent the following letter to each assessee.
27, 1958.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
The time limit for such disclosure was August 31, 1951.
9,50,000 as due on March 31, 1953.
The applications for certificate under Art.
By that date the position in the payment of instalments had reached item c above showing Rs.
The Judgment of M. HIDAYATULLAH, C.J., J. C. SHAH A.N GROVER, A. N. RAY and 1.
The agreement was revised on December 27, 1954.
Jagadish Swarup, Solicitor General, R. Gopalakrishnan and N. Sachthey, for the respondents in all the appeals .
They were 1947/48 to 1951/52 Total tax Smt.
In June 1956 the appellants filed several petitions under s. 9 of the Recovery Act companytending inter alia that the proceedings were barred by limitation.
Bahadur Singh divided equally the 2400 shares between himself and his 3 soils Rajendra Singh Singhi, Narendra Singh Singhi and Birendra Singh Singhi.
42,52,501 during the years 1945 to 1948.
On March 14, 1956 certificates under s. 46 2 of the Indian Income tax Act, 1922 were issued and numberices under s. 7 of the Bengal Public Demands Recovery Act, 1913 were served on the appellants in May, 1956.
In the Demand numberices and challans, demands have been shown to be payable on or before the 31st March 1953 when the next instalment of payment under this Agreement falls due.
67,48,341/11 together with interest would become due.
Champa Kumari and two minor soils Ashok Kumar Singhi, Chandra Kumar Singhi and also a minor daughter.
The shareholders and the companypany then disclosed on July 31, 1951 a companycealed income of Rs.
The companypany sent a cheque for Rs.
133 1 of the Constitution.
on unpaid tax.
1,000 each .
564 to 571 of 1968.
43,99,712 11 The Company paid the following sums by way of tax February 1, 1952 Rs.
who, by the companymon judgment number under appeal in four of these appeals, dismissed them.
Hidayatullah, C.J. This judgment shall dispose of Civil Appeals 564 571 of 1968.
Champa Kumari paid the following sums by way of tax April 1, 1952 Rs.1,00,000 April 1, 1952 Rs.40,000 April 22, 1952 Rs.32 000 RaJendra Singh Singhi paid the following sums by way of tax April 1, 1952 Rs.1,50,000 April 1, 1452 Rs.60,000 April 22, 1952 Rs.48,000 .LM0 On April 22, 1952 they signed the agreement.
These appeals were heard by Mookerji and Sen, JJ.
11,49,019/ 5/ with interest thereon, from the last instalment and accept the sum of Rs.
3,50,000 April 1, 1952 Rs.
was delivered by HIDAYATULLAH, C.J., K. S. HEGDE, J. gave a dissenting opinion.
In 1944 the father and his 3 sons separated and partitioned the property.
There were certain other companyditions with which we need number companycern ourselves.
13 3 1 of the Constitution were also rejected and have given rise to the other four appeals before us.
The Union of India thereupon filed several revisions before the Board of Revenue under s. 53 of the Public Demands Recovery Act, against the order of the Commissioner.
The remaining four appeals are against the order, November 24, 1964, refusing to certify the case as fit for appeal to this Court under Art.
In 1943 the companyliery business and its assets were transferred by the joint family to the Company.
Madam, I am sending today by separate post Regd.
His son Bahadur Singh Singhi took a mining, lease and started a companyliery known as Jhagrakhand Colliery.
The facts are as follows One Dalchand Singh held a pros pecting license in the erstwhile Koree State number in Madhya Pradesh .
Birendra Singh Singhi died on December 12, 1950 leaving a widow Smt.
7,50,000 By March 31, 1952 Rs.
The register of Jhagrakhand Collieries Ltd. was rectified and showed thereafter 900 shares in the name of Narendra Singh Singhi and Rajendra Singh Singhi and 6600 shares in the name of Birendra Singh Singhi.
Certain representations followed and L 7 Sup.
These minors have number attained majority, Under what is known as the Tyagi Scheme announced on May 19, 1951 a voluntary disclosure was made by the Jhagrakhand Collieries Ltd. and the shareholders.
of these, four are against the companymon judgment and order of a Division Bench of the Calcutta High Court, December 10, 1963, dismissing 4 appeals 139 142 of 1959 from the order of a learned single Judge, April 23, 1959 in Writ Petitions 159 162 of 1958.
9,50,000 By March 31, 1957 the balance On the failure of any of the instalments the whole sum of Rs.
