WALLACE BROTHERS AND CO LTD Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THIS is an appeal by leave of the Federal Court of India from a judgment of that Court dismissing an appeal by the appellant Wallace Brothers & Co. Ltd. from a judgment of the High Court of Bombay answering in favour of the respondent the Commissioner of Income-tax, Bombay District, certain questions of law referred to the High Court by the Income-tax Appellate Tribunal.

(2.) TWO questions are in issue : first, the validity of certain provisions of the Indian Income-tax Act, 1922-1939, by virtue of which there was made on the appellant company an assessment to income-tax on income which included income arising without British India, and second, the jurisdiction of a particular Income-tax Officer to make that assessment.

(3.) UPON these facts, which are to be found in the ease stated by them, the Tribunal referred the following questions of law to the High Court: (i) Whether in the circumstances found by the Tribunal in its order under Section 33, the assessee company was taxable to income tax and super tax for the assessment year 1939-1940 in respect of the income (Rs. 7,48,427 less Rs. 4,500) which accrued or arose to it without British India in the previous year? (ii) Are the provisions of Section 4a (c) and 4 (1) (b) (ii) of the Income-tax Act ultra vires the Indian Legislature? (iii) Is Sub-clause (6) of Clause (c) of Section 4a of the Amended Act applicable to the assessment of the assessee company for the year 1839-1940? (iv) Whether on the facts found by the Tribunal the additional Income-tax Officer, Companies Circle, Bombay, had jurisdiction under Section 64 (2) or Section 64 (2) to make the assessment ?