The Commission, after holding an enquiry in all the three cases, recorded their findings and held that an aggregate sum of Rs.
The Central Government, in exercise of its powers under section 5 1 of Act XXX of 1947, referred to the Income tax Investigation Commission R. C. Nos.
In regard to the assessment orders which were served on the 20th February 1954, the petitioners preferred on the 18th May 1954 applications to the Commissioner of Income tax, Madras, under section 8 5 of the Act for references to the High Court on questions of law arising out of those re assessment orders passed by the Income tax Officer.
Muthiah Chettiar who carried on a flourishing banking business in India and foreign companyntries died in or about 1929 leaving behind him two sons M. Ct.
Similar applications were preferred thereafter in respect of the re assessment orders which were served on the petitioners on the 12th May 1954.
Sir M. Ct.
1250 The facts which led to the filing of this petition may be shortly stated.
516, 517 and 518 relating to M. Ct.
The assessment orders for the years 1940 41, 1941 42 and 1948 49 were served on the assessees on the 20th February 1954.
K. Daphtary, Solicitor Genral of India, G. N. Joshi, B. Ganapathy lyer and R. H. Dhebar, with him for the respondents.
The Central Government companysidered the report and, purporting to act under section 8 2 of the Act directed by their order No.
R. Jagadisan, Naunit Lal and T. V. Balakrishnan, V. Balakrishnan, with the permission of the companyrt for the petitioners.
M. Muthiah Chettiar, petitioner 3, and his widow Devanai Achi.
It appears that these re assessment proceedings for the year 1942 43 are yet pending and numberassessment order in respect of that year has yet been served on the petitioners.
Petition under Article 32 of the Constitution of India.
M. Ct.
M. Chidambaram Chettiar since deceased and M. Ct.
ORIGINAL JURISDICTION Petition No.
646 of 1954.
He died by an accident while traveling in a plane in the year 1954 leaving behind him his two sons, the petitioners 1 Devanai Achi had predeceased him.
M. Chidambaram Chettiar, M. Ct.
BHAGWATI J. This petition under Article 32 of the Constitution also raises the question about the companystitutionality of section 5 1 of the Taxation on Income Investigation Commission Act, 1947 XXX of 1947 .
The petitioners 1 2 are the legal representatives of the deceased M. Ct.
This report was submitted by the Commission to the Government on the 26th August 1952.
There assessment order for the year 1942 43 was Dot made though numberices under section 34 of the Indian Income tax Act had been issued by the Income tax Officer on the assessees on the 19th March 1954.
M. Muthiah Chettiar, petitioner 3, and Devanai Achi.
Assessment orders for the years 1943 44 to 1947 48 were served on the 12th May 1954.
December 20.
74 26 I.T./52 dated the 16th September 1952 that appropriate action under the Indian Income tax Act be taken against the assessees with a view to assess or re assess the income which had escaped assessment for the years 1940 41 to 1948 49.
Chidambaram Chettiar companytinued the ancestral banking business and also started several companymercial enterprises.
In pursuance of the said directions of the Central Government the Income tax Officer, City Circle 1, Madras, issued numberices under section 34 of the Indian Income tax Act and made the reassessment for the 1251 years 1940 41, 1941 42 and 1943 44 to 1948 49 based upon the findings of the Commission which were treated as final and companyclusive.
M. Chidambaram Chettiar and also the representatives of their grandmother Devanai Achi.
10,07,322 4 3 represented the undisclosed income during the investigation period and directed distribution of this sum over the several years in the manner indicated by them in Schedule A to their report.
