K NGURUSWAMY Vs. INCOME TAX OFFICER SPECIAL CIRCLE BANGALORE

JUDGEMENT

(1.) The Special Income-tax Officer, Special Circle, Bangalore started proceedings on 5-1-1954 against the petitioner, under Section 34, Income-tax Act for assessing, what was described as the escaped or under-assessed income chargeable to income-tax, during the assessment years 1945-46, 46-47, 47-48 and 48-49. The Income-tax Officer made his assessment for the year 1945-46. The assessments for the remaining periods were not completed. The petitioner contends that these proceedings are all without jurisdiction or authority and are liable to be quashed by the issue of appropriate writs under Article 226, Constitution of India.

(2.) The financial integration of Mysore with the Union of India had come into effect, in pursuance of the recommendations of the committee known as the Indian States Finance Enquiry Committee, recorded in an agreement entered into between the Rajpramukh of Mysore and the President of India on 28-2-1950, that is to say, 3 years before the Income-tax Officer commenced these proceedings. On and from 1-4-1950, by Section 13, Finance Act of 1950, to which the President accorded his assent on 31-3-1950, the Mysore Income-tax Laws stood repealed and the Indian Income-tax Act was extended to the State of Mysore.

(3.) The contention of the petitioner is that after the enactment of the Indian Finance Act it was not competent for the Income-tax Officer to start proceedings under Section 34, Indian Income-tax Act for the purpose of re-opening assessments made before the financial integration. It is undisputed that the petitioner's income for the relevant years had been made, before the integration came into effect.