R S A C KASI IYER Vs. COMMISSIONER OF INCOME TAX MYSORE TRAVANCORE COCHIN AND COORG BANGALORE
LAWS(SC)-1960-9-20
SUPREME COURT OF INDIA
Decided on September 01,1960

R.S.A.C.KASI IYER Appellant
VERSUS
COMMISSIONER OF INCOME TAX,MYSORE TRAVANCORE COCHIN AND COORG,BANGALORE Respondents


Cited Judgements :-

MOHAMMED ABDUL KADER VS. COMMISSIONER OF INCOME-TAX [LAWS(KER)-1961-2-27] [REFERRED TO]


JUDGEMENT

Shah, J. - (1.)The Commissioner of Income-tax for Mysore, Travancore Cochin and Coorg at Bangalore referred under S. 8(5) of the Travancore Taxation on Income (Investigation Commission) Act, 1124 (Malayalam Era) - hereinafter referred to as the Investigation Act read with S. 113 of the Travancore Income Tax Act, 1096 (Malayalam Era) - hereinafter referred to as the Income-tax Act, the following questions to the High Court of Travancore-Cochin:
1. Whether on the facts and in the circumstances of the case, there was any evidence before the commission to come to the conclusion to which it came in its report

2. On the facts and in the circumstances of the case was the order C. No. 76(1) I.T/51 dated 25-10-1951 of the Government of India passed under the provisions of S. 8(2) of the Travancore Taxation on Income (Investigation Commission) Act read with S. 3 of the Opium and Revenue Laws (Extension of Application) Act of 1950, a legal and valid order

3. Whether on the facts and in the circumstances of the case, the order passed by the Income-tax Officer in pursuance of the directions of the Government under S. 8(2) of the Travancore Taxation on Income (Investigation Commission) Act, 1124, was a legal and valid order

(2.)The High Court answered the three questions in the affirmative. Against the order of the High Court answering the reference, this appeal has been preferred with special leave.
(3.)The facts which gave rise to the reference are briefly these. The appellants are a firm of merchants carrying on business in yarn in the Districts of Trivandrum and Nagercoil in the Tranvancore-Cochin State. For the accounting year 1118 M.E. (August 17, 1942 to August 16, 1943), the appellants submitted a return under the Income-tax Act showing a net return of Rs. 4,78,594-5-0 as assessable income and they were assessed to income-tax and super tax by the Income-tax Officer on that return. In 1124 M.E., the Legislature of Travancore enacted the Investigation Act conferring authority upon the Government of Travancore to constitute a commission to be called an Income-tax Investigation Commission to investigate and report on all matters relating to taxation on income, with particular reference to the extent to which the existing law relating to, and procedure for, the assessment and collection of such taxation was inadequate to prevent evasion thereof and to investigate in accordance with the provisions of the Act in cases referred, on or before February 16, 1950, to it under S. 5. The Government was authorised after consideration of the report to direct that proceedings be taken under the various Acts including the Income-tax Act in respect of any period commencing after August 16, 1939. By sub-sec. 4 of S. 8, all assessment or reassessment proceedings taken in pursuance of the direction under sub-sec. 2, the finding recorded by the Commission on the case or on the points referred to it were subject to the provisions of sub-secs. (5) and (6) to be final. Sub-section 5 of S. 8 provided for a reference to the High Court on any question of law arising out of any order made by the Commission.
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