226 of the Constitution, out of which the present appeal arises.
On March 12, 1955, the Income tax Officer, Special Circle, Ambala, issued a numberice purporting to be under section 34 of the Patiala Income tax Act of Samvat 2001 to the appellant firm calling upon it to file a return of its income and total world income, because he had reason to believe that the income had been under assessed previous to this, on November 4, 1953, the Commissioner of Income tax Act, Punjab 1 , Himachal Pradesh, Bilaspur and Simla, purporting to act under section 5, sub sections 5 and 7A , of the Indian Income tax Act, ordered that the assessment of the appellant firm would be done by the Income tax Officer, Special Circle, Ambala, and number by the Income tax Officer, B Ward, Patiala, who ordinarily would be the companypetent authority under section 64 of the Indian Income tax Act to assess the appellant firm.
The two Ordinances instead applied laws in force in the Patiala State to the area of the new State which included Kapurthala, and the Patiala Income tax Act, 2001, came into force.
Later still, the Indian Finance Act, 1950 26 of 1950 , applied the Indian Income tax Act to the Part B States, which had emerged as a result of political changes.
The appellant firm raised objections, but failed, and then filed the petition under Art.
In that State, an income tax law was in force, and prior to the integration of the State, on April 10, 1947, the income of the firm for the account year 1945 1946 Samvat 2002 was duly assessed, and the tax was also paid.
Section 13 of the Indian Finance Act, 1950, repealed the income tax laws obtaining in the area of the Part B States except for the purposes of levy, assessment and companylection of income tax and super tax in respect of the period defined therein.
The firm carried on business as forest lessees and timber merchants at Dhilwan in the former Kapurthala State.
The High Court dismissed the petition, but granted a certificate under Arts.
Subsequently political quahogs took place, Kapurthala integrated into what was known as Pepsu, and the Rajpramukh issued two Ordinances in Samvat 2005, by which all laws in force in Kapurthala including the income tax law ceased to be operative from August 20, 1948.
against the Income tax Officer, Special Circle, Ambala, and the Commissioner of Income tax, Punjab 1 , Himachal Pradesh, Bilaspur and Simla, in respect of reassessment of the income of the firm for the account year, 1945 46.
Hidayatullah, J. The appellant firm, L. Hazarimal Kuthiala of Kapurthala, moved the high Court of Punjab under article 226 of the Constitution for writs of prohibition, certiorari, quo warranto, etc.,
