On that income, income tax, super tax, and surcharge were levied.
35 lakhs which included Rs.
29 lakhs already assessed.
In the month of April, 1959, there was a reassessment on all the four partners and the total income for the four assessment years thus came to about Rs.
29,00,000.
The surcharge, according to the petition was Rs.
140 and 177 to 191 of 1959.
R. M. Abdul Karim and K. R. Choudhury, for petitioners.
March 22.
N. Rajagopala Sastri and D. Gupta, for respondents.
The petitioners are four partners of a firm named Mohammedaly Sarafaly Co., Madras, which was carrying on business in hardware, stocks, shares, etc.
ORIGINAL JURISDICTION Petitions Nos.
The assessment relates to four assessment years 1942 43, 1943 44, 1944 45 and 1945 46.
All assessments were companypleted before 1949 and total income for the purpose of assessment for those four years was about Rs.
For the assessment years 1942 43 to 1945 46 this firm was treated as a registered firm under the Indian Income tax Act and therefore the partners were assessed on their respective shares of the profits from the business of the firm.
The Judgment of the Court was delivered by KAPUR, J. These are sixteen petitions under Art.
32 of the Constitution challenging the legality of the imposition of surcharge imposed on the income of the assessees under the Finance Acts of 1942, 1943, 1944 and 1945.
In 1955 the petitioners under a Voluntary Disclosure Scheme with regard to profits which had escaped assessment made a disclosure of their income and proceedings were taken under s. 34 of the Income tax Act.
