Decided on November 16,1955

His Grace The Archbishop Of Verapoly Appellant


Varadaraja Iyengar, J. - (1.) THIS is a petition under Article 226 and 227 of the Constitution of India fried by His Grace the Archbishop of Veropoly for and on behalf of the Ernakulam Latin Archbishopric, It calls in question two orders of the Respondent, Income Tax Officer, Ernakulam Circle, Ernakulam, assessing him, as trustee of Religious Institution to Income Tax for the years r 124 and 1125 M.E. (the accounting periods being the calendar years 1947 and 1948 respectively) under Section 8(4) of the Cochin Income Tax Act of 1.117, corresponding to S. 23(4) of tire Indian Act.
(2.) THE assessment order 1124 is filed as Ext. I. It mentions that the procurator to His Grace the Archbishop was served with notice under Section 27(2) of the Cochin Income Tax Act corresponding to Section 22(2) of the Indian Act but he had defaulted to submit returns of income and statements in terms of the said notice. It further mentions that the procurator had also been served with statutory notices under Section 27(4) corresponding to Section 22(4) of the Indian Act, to produce accounts and compliance with the terms of this notice had also been defaulted. The order proceeds to say that the procurator had been given repeated adjournment even bordering on unmerited leniency to file returns and produce account books and because further waiting was useless, the Income Tax authority was making a best judgment assessment under Section 28(4) of the Act (Cochin). The assess ability of the Archbishopric to Income Tax under tire Cochin Income Tax Act, in respect of all voluntary contributions received by it, had also been already established by the assessment order for 1123 and the appeal there from before the appellate Assistant Commissioner, Ernakulam. In the result the voluntary contributions which were received during the year in question was estimated at Rs. 73,000 and allowing a total expenditure of Rs. 3,000 as necessarily incurred for raising the funds, the net income was found to be list. 70,000 and a total tax of Rs. 3L,782 -4 -0 was fixed as the Income Tax and super -tax due. The assessment order for tho year 1125 is filed as Ext. II, It proceeds on the same basis as Ext. I just summarised. The voluntary contributions received during the concerned year was fixed at Rs. 1,10,000 and deducting the estimated collection charges of Rs. 5,000 the net assessable income was found to be Rs. 1,05,000. Income Tax and super -tax amounting in the aggregate to Rs. 59,593 -12 -0 was levied as against the Assessee.
(3.) THE procurator to tho Archbishop is the Rev. Fr. George Kanapilly. He admits in the affidavit filed in support of the petition herein that the notices referred to in Ext. I order had been really served upon him. The service of the notices in respect of the assessment year 1125, though not admitted in the affidavit, has also been conceded before us during argument. We may take it therefore that the statutory notices under the Clauses (2) and (4) of Section 27; had been served on the Assessee as regards both the accounting years 1947 and 1948. The procurator's affidavit however denies that there had been any real delimit in complying with the notices of requisition and goes into great detail about the circumstances under which the so called default arose. A supporting affidavit from T. V. Ganesa Iyer who is a practising Chartered Account ant at Ernakulam and who had been engaged by the procurator to assist him in the matter has also been filed. A counter -affidavit in answer to the above affidavits has been filed by the present Additional Income Tax Officer at Ernakulam on behalf of the Department. The facts gatherable from these affidavits are as follows.;

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