Sikri, J. - (1.) These two appeal by certificate granted by the High Court of Kerala are directed against the judgment of the High Court passed in Appeal No. 1067 of 1959, which arose out of Original Suit filed in the Court of Subordinate Judge, Cochin. Civil Appeal No. 100 of 1966 is by M. J. Kanaka Bai and others (hereinafter referred to as "the plaintiffs"), and Civil Appeal No. 101 of 1966 is by the Union of India (hereinafter referred to as "the defendant").
(2.) In order to appreciate the contentions raised before us, it is necessary to set out the following facts : One Shri A. N. Padmanabha Shenoi, father of the two plaintiffs, was carrying on a joint Hindu family business under the name of style of "A. N. Guna Shenoi and Bros." in the former State of Cochin. At the relevant time, the Cochin Excess Profits Tax Act, 1117 M. E. (II of 1117 M. E.) (1941 A. D.) and Cochin Income Tax Act, 1117 M. E. (VI of 1117 M. E.) were in force in the Cochin State. Cochin Later became part of the State of Travancore- Cochin. On the commencement of the Constitution, the latter State became a Part B State in the Union of India.
(3.) The Government of India on May 20, 1951, issued a notification giving certain terms to assessee if they disclosed their hidden income or income which had escaped taxation. We are not concerned with the exact concessions given but only with the question whether this notification was also concerned with the assessment under the Excess Profits Tax Act. Our attention was invited by the plaintiffs to the opening sentence of the notification, which is as follows : "Detailed measures for launching a special drive for the clearance of arrears of income-tax have now been finalised by the Government of India." ;