PALURAM DHANANIA Vs. INCOME TAX OFFICER, SPECIAL CIRCLE I, NAGPUR

JUDGEMENT

(1.) IN the view we are taking of the preliminary objection in this case, it is not necessary to give any but the main facts.

(2.) THE Income -tax Investigation Commission started a case against the petitioner, in which the latter offered a settlement and agreed that "in case any other item of income comes to light in future, the Commission shall be free to report the same and the Department to assess it in accordance with law". The Commission favourably considered the terms and recommended that no proceedings by way of penalty or prosecution may be taken against him. The order of the Commission is Exh. P -2 and the application for settlement Exh. P 1. The Central Government having accepted the terms and conditions of settlement, they were ordered to be recorded under section 84 of the Taxation on Income (Investigation Commission) Act and the case to be disposed of by the Commission. This was on September 29, 1950.

(3.) THE present petition was filed on the 16th September 1955 and was directed against all the three officers above named and the Union of India. It questioned the legality of the action taken and asked that the notices under sections 34(1 -A) and 34(1)(a) be quashed. It also sought similar relief against two notices under section 34 of the Income -tax Act issued by the Income Tax Officer, Central Circle V, New Delhi, for the years 1948 -49 and 1949 -50 and seven others under section 15 of the Excess Profits Tax Act, 1940, for the years 1941 -42 to 1948 -49 by the Excess Profits Tax Officer, Central Circle V, New Delhi. The Union of India was subsequently given up.