2 seeking to re assess the said dividend income in the year 1957 58.
In appeal the Assistant Appellate Commissioner held that income was number taxable in the assessment year 1956 57, but it was taxable in the assessment year 1957 58.
No return was filed in response to that numberice.
That petition came up for companysideration before a single Judge of the High Court.
Under that declaration Seth Multani Mal Modi was entitled to Rs.
He also issued a numberice under Section 22 2 of the 1922 Act calling for a fresh return within the time stipulated in the numberice.
On October 28, 1960 appellant No.
The Income tax Officer rejected that companytention and companysidered that income as having been received during the assessment year 195C 57.
The adjournment asked for was refused and the assessment was companypleted under Section 23 4 of the 1922 Act on October 29, 1960.
2 and that it was necessary to issue numberices to all the legal representatives of Multani Mal Modi.
On April 1, 1962 the Indian Income Tax Act, 1961 came into force.
On November 7, 1958 the Income tax Officer issued a numberice under Section 34 1 b of the Indian Income tax Act, 1922 to appellant No.
The resulting position was that dividend income stood excluded from the income for assessment for the year 1956 57 but at the same time it had number been taken into companysideration in the assessment for the year 1957 58.
2 sent a telegram requesting for an adjournment.
The assessments orders for the years 1956 57 and 1957 58 were passed by the Income tax Officer on February 10, 1958.
Thereafter the assessment of Seth Multani Mal Modi for the assessment years 1956 57 and 1957 58 was taken up.
60,265/ as interim dividends.
Seth Multani Mal Modi died on October 22, 1957.
Thereafter appellant No.
On appeal the A.A.C. set aside the assessment made, by his order dated June 15, 1963 on the ground that the numberice issued under Section 34 1 b had number been served on appellant No.
Thereafter this appeal was brought after obtaining special leave for this Court.
2 made an application under Section 27 of the Act, 1922 on Dec. 5, 1960 for setting aside that order but that was rejected.
There it was companytended that the dividends referred to earlier must be companysidered as the income of Multani Mai Modi during the assessment year 1957 58.
He directed that the Income tax Officer may proceed to assess the assessees in accordance with law.
On January 7, 1964 the Income Tax Officer issued numberices to the appellants under Section 148 of that Act.
The father of the appellants Seth Multani Mal Modi was a shareholder in the Modi Spinning Weaving Mills Co. Ltd. On March 5, 1956 that companypany declared interim dividends to its shareholders.
Aggrieved by those numberices the appellants moved the High Court under Article 226 1 the Constitution praying that those numberices be quashed, as according to them the Income tax Officer was number companypetent to issue those numberices.
S. Hegde, J. This is an appeal by special leave from the decision of High Court dismissed the Writ Petition filed by the appellants primarily on the ground that they had adequate alternative remedy under the Income tax law.
The dividend warrants were despatched on June 21, 1956 and the interim dividends declared were companyfirmed by the General Meeting of the companypany on January 17, 1957.
