JAGADISAN J. - (1.) THE petitioner prays for the issue of a writ of certiorari or other appropriate writ to quash the order of the Income-tax Officer, Cuddalore, the first respondent, dated March 1, 1956, in G. I. 137-8/53-54 under section 35 of the Indian Income Tax Act, 1961. THE second respondent is the Commissioner of Income-tax, Madras, who declined to revise the order of the first respondent THE brief facts that need be set out are as follows : THE petitioner is a resident of Panruti, South Arcot District, and he is a partner in various firms of business. Two of the firms are N. V. T. S. Rowther & Co., Colombo, and N. V. T. S. & Co., Singapore. THEse are two non-resident firms in which the petitioner as a partner is entitled to a share. For the assessment year 1953-54 the petitioner's total world income was computed at Rs. 62, 810 after allowance of the earned income relief. This included the petitioner's foreign income from the two firms at Colombo and Singapore. THE Income-tax Officer, Cuddalore, by his order of assessment dated January 23, 1954, provisionally adopted the sums of Rs. 13, 899 and Rs. 2, 924 as the assessee's share of income from the Singapore and Colombo firms respectively. THE order of assessment states that these figures are adopted only provisionally subject to revision after completion of assessment of both the firms
(2.) FOR the year ended April 12, 1953 (assessment year 1953-54), the Colombo firm was treated as a non-resident. The firm had submitted a return to the Income-tax Officer, Cuddalore, stating that the income for the year was Rs. 18, 220. The officer disallowed a sum of Rs. 10, 000 claimed as loss and added that sum to the income returned. Thus the total income of the firm was computed at Rs. 28, 220. The firm, having been treated as a non-resident firm, the officer added the following in his order : "As this income accrued outside India and as there is no Indian income for the firm the firm is declared not liable to tax." The petitioner's share of the income of the firm was shown as Rs. 4, 924The firm preferred an appeal against this order to the Appellate Assistant Commissioner of Income-tax, Madras. He observed that the firm was a non-resident and that the income of the firm accrued and arose outside the taxable territories. Such income as the firm derived cannot therefore be brought to tax. The appellate authority therefore annulled the assessment of the firm. This order is dated February 29, 1956
(3.) AFTER the assessment of the Colombo firm by the Income-tax Officer he started proceedings under section 35 of the Indian Income Tax Act, 1961 against the petitioner. He issued a show cause notice on September 23, 1955, in these terms "While completing your assessment for 1953-54 your foreign income was provisionally taken as Rs. 16, 823 before allowance of statutory exemption of Rs. 4, 500 as under N. V. T. S. Rowther & Co. (Colombo) Rs. 2, 924 N. V. T. S. Rowther & Co. (Singapore) Rs.13, 899 I now find that your correct share of income in the said two firms are Rs. 4, 924 and Rs. 13, 901 respectively. I now propose to adopt your correct share of income in the two foreign firms and revise your assessment as under ...... You are requested to state your objections, if any, to my above revision on or before September 30, 1955. If no reply is received by the said date it shall be presumed that you have no objection to my proposal and your assessment will be revised accordingly." *;