J K IRON AND STEEL COMPANY LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution. It prays that notices dated 6th February, 1964 and 7th July, 1964 issued by the Income-tax Officer under Section 23-A of the Income Tax Act, 1922 be quashed and the respondents be prohibited from taking any further proceedings in virtue of the aforesaid notices. The question raised by this petition is as to the true nature and character of an order under Section 23-A of the Income-tax Act.

(2.) MESSRS. J.K. Iron and Steel Company Ltd., Kanpur is the petitioner. It is Public Limited Company. It carries on the business of re-rollers, steel fabricators and foundry men and manufacturers of Hydraulic crancrushers. It also derives income from dividends and interest from stock. The petitioner is not a Company in which the public is substantially interested within meaning of Section 28-A of the Income-tax Act, 1922. The petition relates to the assessment year 1956-57, the accounting period ending on 30th April, 1955

(3.) THE next day, i.e. on 23-9-1964 the Income-tax Officer addressed another letter to the Company. It said that Section 23-A does not refer to the returned income of the company but to the assessed income. THE company seems to have worked out the short fall of Rs. 461 on the basis of the returned income. This being incorrect, the company was asked to work out the correct short fall according to the total income. THE matter was then heard on 30th September, 1964.