- (1.) This is a test case under the Indian Income-tax Act. The petnr. Madangopal Kabra resides & carries on business in the district of Jodhpur in the United State of Rajasthan where income-tax had not been levied prior to 1-4-1960. In the Rajasthan Gazette dated 13-5-1950, the following notice was published: "In pursuance of Sub-section (1) of Section 22, Indian Income-tax Act, 1922 (XI [11] of 1922) we the Income-tax Officers mentioned in Col. 1 of the table below hereby give notice to every person subject to our jurisdictions as specified in the corresponding entry in Col. 3 whose total income during the previous year exceeded the maximum amount not chargeable to income-tax to furnish within sixty-five day3 from the data of publication of this notice a return in the prescribed form & verified in the prescribed manner setting forth (along with such other particulars as are required by the said form) his total income & total world income during that year. Penalty.-Any person who fails without reasonable cause to furnish the return required by this notice or fails without reasonable cause to furnish it within the time allowed or in the manner required is liable under Section 28 of the said Act to a penalty not exceeding one & a half times any tax payable by him."
(2.) Underneath the notice were published the names of various Income-tax Officers with their addresses & jurisdictions. Thereafter, on 7-8 1950, a notice was served upon the petnr. requiring him to produce his account books on 118-1950 in connection with the income-tax assessment. The constitution of India came into force on 26-1-1950 giving the Dominion Parliament power to legislate in matters relating to income-tax for the whole of India, while according to the Finance Act of 1950, Rajasthan became taxable territory from 1-4-1950. The petnr. has approached this Ct. with an appln, under Article 226, Const. Ind. objecting to his income being assessed to income-tax which accrued prior to 1-4-1950 & has based it on two principal grounds, namely: (1) That Rajasthan became taxable territory on 1-4-1950 & therefore, income accruing or arising before that date was not assessable to income-tax. (2) That the Dominion Parliament did not make any law authorizing taxation on income accruing prior to 1-4-1950 & had no jurisdiction to make any law relating to the imposition of income-tax in Rajasthan prior to 26-1-1950.
(3.) He accordingly prayed that the Union of India be restrained by means of a writ of mandamus, or certiorari or an appropriate writ, direction or order from taking any action under any provision of the Income-tax Act for making any assessment of such a tax or for levying & realising the same on the income which accrued to the petnr. prior to 1/4/1960 & further be directed to direct its income-tax Officers posted in Rajasthan not to harass the petnr. or to demand any account-books or other information for the purpose of making any assessment or to make any such assessment or realize the amount from the petnr.;