BHAILAL AMIN AND SONS LTD Vs. R P DALAL

JUDGEMENT

(1.) THIS is an appeal from a decision of Mr. Justice Tendolkar who dismissed the petition preferred by the appellants lor an order upon the Income Tax Tribunal to make a reference to the High Court under Section 66 (1), Indian Income-tax Act.

(2.) THE petitioners are a company incorporated in Baroda and they were assessed to income-tax in Baroda under the Baroda State Income Tax Act on 30-5-1949, for the assessment year 1947-48, which corresponded to the accounting year 1946. The petitioners then filed an appeal in the Court of the Huzur Adalat, which right of appeal was given to them under the Baroda law. In March 1949 the State of Baroda merged with India, and on 31-12-1949, the Taxation Laws (Extension to Merged States and Amendment) Act, 1949, was passed. Under this Act, by Section 3 of the Act, the Indian Income-tax Act of 1922 was brought into operation and extended to all the merged States as from 1-4-1949. By Section 7 of the Act it was provided ;

(3.) THE Central Government issued an order on 25-7-1950, by which it provided that :