L HAZARI MAL KUTHIALA Vs. INCOME TAX OFFICER SPECIAL CIRCLE AMBALA CANTT
LAWS(SC)-1960-9-19
SUPREME COURT OF INDIA (FROM: PUNJAB & HARYANA)
Decided on September 27,1960

L.HAZARI MAL KUTHIALA Appellant
VERSUS
INCOME TAX OFFICER,SPECIAL CIRCLE,AMBALA CANTT Respondents





Cited Judgements :-

DELHI CLOTH AND GENERAL MILLS COMPANY LIMITED VS. DIL BAHADUR [LAWS(DLH)-1981-1-27] [REFERRED 12.]
SHREE VALLABH GLASS WORKS LTD VS. STATE OF GUJARAT [LAWS(GJH)-1991-4-8] [REFERRED TO]
KEDAR NATH SETHI VS. LIFE INSURANCE CORPORATION OF INDIA [LAWS(ALL)-1960-3-4] [REFERRED TO]
LAXMI INDUSTRIES AND COLD STORAGE COMPANY PRIVATE LIMITED VS. INCOME TAX OFFICER [LAWS(ALL)-1970-5-3] [REFERRED TO]
BHARAT NEPAL KASTH BHANDAR VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-1971-5-31] [REFERRED TO]
SUBHASH OIL INDUSTRIES VS. STATE OF U P [LAWS(ALL)-1974-4-8] [REFERRED TO]
COMMISSIONER OF SALES TAX U P LUCKNOW VS. PRAKASH CHAND [LAWS(ALL)-1991-1-20] [REFERRED TO]
RAMRAJ RICE MILLS VS. COMMISSIONER TRADE TAX [LAWS(ALL)-2000-8-108] [REFERRED TO]
BONGAIGAON MUNICIPAL BOARD VS. STATE OF ASSAM [LAWS(GAU)-1997-5-24] [REFERRED TO]
DALE CORNEGIES EDUCATIONAL SOCIETY KHAMMAM VS. GOVERNMENT OF ANDHRA PRADESH [LAWS(APH)-1991-9-24] [REFERRED TO]
B SANJIVA RAO VS. REGIONAL JOINT DIRECTOR OF SCHOOL EDUCATION [LAWS(APH)-2000-9-36] [REFERRED TO]
T MURLIDHAR VS. STATE OF A P [LAWS(APH)-2004-9-133] [REFERRED TO]
BANWARILAL AGARWALA VS. COAL BOARD [LAWS(CAL)-1965-7-11] [REFERRED TO]
INDRA SINGH AND SONS PRIVATE LTD VS. UNION OF INDIA [LAWS(CAL)-1965-9-5] [REFERRED TO]
GIRIDHARILAL JHAJHARIA VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1968-11-2] [REFERRED TO]
NARENDRA SHARMA VS. INCOME TAX OFFICER [LAWS(CAL)-1969-3-23] [REFERRED TO]
CHHAGANMAL AGARWALLA VS. INCOME TAX OFFICER A WARD [LAWS(CAL)-1970-5-4] [REFERRED TO]
PROBODH CH SETH VS. INCOME TAX OFFICER C WARD [LAWS(CAL)-1970-12-18] [REFERRED TO]
AKHTAR MIRZA VS. COMMISSIONER OF WAKFS [LAWS(CAL)-1971-3-9] [REFERRED TO]
PROBODH CHANDRA SETT VS. INCOME TAX OFFICER C WARD [LAWS(CAL)-1972-3-18] [REFERRED TO]
MRIGANKA MOHAN SUR VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1973-5-9] [REFERRED TO]
CHHOGMAL AGARWAL VS. INCOME TAX OFFICER A WARD [LAWS(CAL)-1974-3-13] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. TURNER MORRISON AND CO LTD [LAWS(CAL)-1977-7-35] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. PATROKOLA TEA CO LTD [LAWS(CAL)-1978-3-50] [REFERRED TO]
IMPERIAL CHEMICAL INDUSTRIES LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1978-3-39] [REFERRED TO]
RADHESHYAM SHARMA VS. GOVT OF M P [LAWS(MPH)-1971-11-2] [REFERRED TO]
MAYA DEBI BANSAL VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1978-9-3] [REFERRED TO]
COMMISSIONER OF INCOME TAX CENTRAL I VS. BIRLA BROS P LTD [LAWS(CAL)-1981-7-22] [REFERRED TO]
KRUPASINDHU MISRA VS. GOBINDA CHANDRA MISRA [LAWS(ORI)-1980-8-1] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. SUNDARAM AND COMPANY P LIMITED [LAWS(MAD)-1969-11-9] [REFERRED TO]
MAYONGBAM RADHAMOHAN SINGH VS. CHIEF COMMISSIONER ADMINISTRATOR MANIPUR [LAWS(SC)-1976-11-44] [RELIED ON]
MUNICIPAL CORPORATION OF THE CITY OF AHMEDABAD VS. BEN HIRABEN MANILAL [LAWS(SC)-1983-4-21] [REFERRED TO]
COMMISSIONER SALES TAX U P LUCKNOW VS. ANOOP WINES KHULDABAD ALLAHABAD [LAWS(SC)-1988-8-72] [DISTINGUISHED]
COMMISSIONER OF INCOME TAX VS. KISHNI BAI [LAWS(DLH)-1973-5-4] [REFERRED]
COMMISSIONER OF INCOME TAX VS. KALYAN SINGH [LAWS(DLH)-1979-11-31] [REFERRED TO]
DILBARSINGH MOHINDERSINGH SOMAL VS. AHMEDABAD MUNICIPAL CORPORATION [LAWS(GJH)-2010-11-103] [REFERRED TO]
BHARON PRASAD VS. REGIONAL TRANSPORT AUTHORITY [LAWS(ALL)-1977-8-28] [REFERRED TO]
STATE OF U P VS. AGARWAL SPIRIT SUPPLY CO [LAWS(ALL)-1978-10-28] [REFERRED TO]
UMESH CHAND BHILWAR VS. STATE OF U P [LAWS(ALL)-1998-11-111] [REFERRED TO]
NAVAYUGA TRADERS GUNNIES FIRM RAJAHMUNDRY VS. COMMISSIONER OF INCOME TAX ANDHRA PRADESH HYDERABAD [LAWS(APH)-1970-2-21] [REFERRED TO]
MADHAVI VS. DISTRICT COLLECTOR AND EXECUTIVE DISTRICT MAGISTRATE [LAWS(KER)-1963-9-15] [REFERRED TO]
DEO PRASAD KASHYAP VS. CHANCELLOR INDIRA GANDHI KRISHI VISHWAVIDYALAYA [LAWS(MPH)-1988-11-13] [REFERRED TO]
K P KRISHNANKUTTY MENON VS. STATE OF KERALA [LAWS(KER)-1967-4-6] [REFERRED TO]
GOPINATHA PILLAI VS. STATE OF KERALA [LAWS(KER)-1967-7-27] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. MADURAI KNITTING CO [LAWS(MAD)-1975-2-10] [REFERRED TO]
BASANTSINGH ALIAS BIAHANSINGH ROADSINGH VS. STATE OF MADHYA PRADESH [LAWS(MPH)-1991-8-11] [REFERRED TO]
BALBIR SINGH VS. UNION OF INDIA [LAWS(CAL)-1990-8-28] [REFERRED TO]
S RAMA MOHAN RAY VS. A KISHORE CHANDRA PATRA [LAWS(ORI)-1994-8-16] [REFERRED TO]
Srimati Preeti Rungta VS. Income tax Officer [LAWS(CAL)-1994-1-31] [REFERRED TO]
NARAYAN HOSIERY PVT LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(BOM)-1977-8-33] [REFERRED TO]
GEORGE ISSAC VS. UNION OF INDIA [LAWS(KER)-2004-2-29] [REFERRED TO]
NARESH ALIAS NARAYAN MURLIDHAR KABRA VS. STATE OF MAHARASHTRA [LAWS(BOM)-2000-12-12] [REFERRED TO]
COMMISSIONER OF INCOME-TAX VS. HARGOPAL BHALLA AND SONS [LAWS(P&H)-1970-11-31] [REFERRED TO]
COMMISSIONER OF INCOME-TAX VS. SATNAM TRANSPORT CO P LTD [LAWS(P&H)-1972-4-25] [REFERRED TO]
PREM NATH VS. STATE OF RAJASTHAN [LAWS(RAJ)-1964-11-2] [REFERRED TO]
R A BOGA VS. APPELLATE ASSISTANT COMMISSIONER OF INCOME-TAX AMRITSAR [LAWS(P&H)-1976-11-1] [REFERRED TO]
HARNANDAN SINGH VS. ADITYA NARAIN SINGH [LAWS(PAT)-1961-10-10] [REFERRED TO]
RAJA BAHADUR KAMAKHYA NARAIN SINGH VS. UNION OF INDIA [LAWS(PAT)-1962-8-8] [REFERRED TO]
RAJA BAHADUR KAMAKHYA NARAIN SINGH VS. UNION OF INDIA [LAWS(PAT)-1962-8-6] [REFERRED TO]
KARTAR SINGH VS. STATE OF PUNJAB [LAWS(P&H)-1982-3-15] [REFERRED TO]
KARPOORI THAKUR VS. ABDUL GHAFOOR [LAWS(PAT)-1974-5-1] [REFERRED TO]
HARENDRA PRASAD SINGH VS. STATE [LAWS(PAT)-1984-8-18] [REFERRED TO]
GURU PRASAD VS. COMMISSIONER OF INCOME TAX [LAWS(PAT)-1985-5-16] [REFERRED TO]
STANDARD MOTOR UNION (PRIVATE) LTD., ETTUMANOOR VS. STATE OF KERALA [LAWS(KER)-1961-8-39] [REFERRED TO]
Laxmi Oil Mills (Firm) VS. Liladhar Chhaganlal (Firm) [LAWS(MPH)-1962-12-7] [REFERRED TO]
STATE OF KERALA VS. MOHIDEEN KUNJU [LAWS(KER)-1965-10-34] [REFERRED TO]
VIJAY TELEVISION (P.) LTD. VS. DISPUTE RESOLUTION PANEL [LAWS(MAD)-2014-4-197] [REFERRED TO]
FAROOK MOHAMMAD VS. STATE OF M.P. AND ORS. [LAWS(MPH)-2015-8-107] [REFERRED TO]
SAT PAL SABHARWAL VS. THE HIMACHAL PRADESH FINANCIAL COPPORATION AND ORS. [LAWS(HPH)-1977-7-8] [REFERRED TO]
THE COMMISSIONER, CENTRAL EXCISE, CUSTOMS & SERVICE TAX, BHUBANESWAR-I COMMISSIONERATE VS. BALLARPUR INDUSTRIES LIMITED [LAWS(ORI)-2016-3-13] [REFERRED TO]
SUNIL KUMAR BANERJEE VS. STATE OF WEST BENGAL [LAWS(CAL)-1973-9-26] [REFERRED TO]
STATE OF UTTAR PRADESH VS. OM PRAKASH SHARMA AND OTHERS [LAWS(ALL)-1963-11-41] [REFERRED TO]
R. C. GARG VS. UNION OF INDIA THROUGH MILITARY ESTATES OFFICER, AGRA AND ANOTHER [LAWS(ALL)-1974-9-44] [REFERRED TO]
SRI SUBRATA SARKAR & ANR. VS. UNION OF INDIA & OTHERS [LAWS(CAL)-1985-8-34] [REFERRED TO]
MADHUSUDAN KAYAL VS. STATE OF WEST BENGAL AND OTHERS [LAWS(CAL)-1995-2-31] [REFERRED TO]
INDOSWE ENGINEERS (P) LTD VS. STATE OF MAHARASHTRA [LAWS(BOM)-1995-2-127] [REFERRED]
SIRANJA SINGH AND ANOTHER VS. STATE OF PUNJAB [LAWS(P&H)-1983-3-91] [REFERRED]
K.G. PONNUSWAMI CHETTIAR VS. THE STATE OF MADRAS [LAWS(MAD)-1969-11-48] [REFERRED TO]
COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE VS. PANKAJ JAJU [LAWS(BOM)-2013-11-183] [REFERRED TO]
NILOTPAL ROY CHOWDHURY VS. BANGIYA GRAMIN VIKASH BANK & ORS. [LAWS(CAL)-2012-2-318] [REFERRED TO]
SYED ABBAS HUSSAIN NAGRI VS. STATE OF A. P., THROUGH ITS SECY. TO GOVT. REVENUE DEPARTMENT HYDERABAD AND ANOTHER [LAWS(APH)-1969-9-19] [REFERRED TO]
M/S CHANDRA SHUBH YATRA CO. PVT. LTD. VS. STATE OF RAJASTHAN [LAWS(RAJ)-2018-4-131] [REFERRED TO]
ARCHANA SHARMA VS. UNIVERSITY GRANTS COMMISSION [LAWS(GAU)-2019-4-87] [REFERRED TO]
STATE OF TRIPURA VS. BIBHU KUMARI DEVI [LAWS(TRIP)-2020-1-6] [REFERRED TO]
KIRAN DEVI VS. BIHAR STATE SUNNI WAKF BOARD [LAWS(SC)-2021-4-1] [REFERRED TO]
STATE OF HARYANA VS. RAJ KUMAR [LAWS(SC)-2021-8-2] [REFERRED TO]
VARUN GOENKA VS. STATE OF WEST BENGAL [LAWS(CAL)-2021-12-23] [REFERRED TO]


JUDGEMENT

- (1.)The appellant firm, L. Hazarimal Kuthiala of Kapurthala, moved the High Court of Punjab under Art. 226 of the Constitution for writs of prohibition, certiorari, quo warranto etc., against the Income-tax Officer, Special Circle, Ambala and the Commissioner of Income-tax, Punjab (I), Himachal Pradesh, Bilaspur and Simla in respect of reassessment of the income of the firm for the account year, 1945-46. The High Court dismissed the petition, but granted a certificate under Arts. 132 and 133 of the Constitution, and this appeal has been filed on that certificate.
(2.)The firm carried on business as forest lessees and timber merchants at Dhilwan in the former Kapurthala State. 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 1945-46 (Samvat 2002) was duly assessed, and the tax was also paid. Subsequently, political changes 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 Kapuurthala including the Income-tax law ceased to be operative from August 20, 1948. 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. 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 purpose of levy, assessment and collection of income-tax and super-tax in respect of the period defined therein.
(3.)On March 12, 1955, the Income-tax Officer, Special Circle, Ambala, issued a notice purporting to be under S. 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 underassessed. Previous to this, on November 4, 1953, the Commissioner of Income-tax, Punjab (I), Himachal Pradesh, Bilaspur and Simla, purporting to act under S. 5, sub-secs. (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 not by the Income-tax Officer, B-Ward, Patiala, who ordinarily would be the competent authority under S. 64 of the Indian Income-tax Act to assess the appellant firm. The appellant firm raised objections, but failed, and then filed the petition under Art. 226 of the Constitution, out of which the present appeal arises.
;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.