PILANI INVESTMENT CORPORATION LTD Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) IN this application the petitioner seeks appropriate writs and orders directing the respondents, their servants and agents to recall show-cause notice dated May 13, 1964, and to forbear from giving effect to the same.

(2.) THE petitioner is a public company incorporated under the Indian Companies Act, 1956, its registered office being at Birlanagar, Gwalior, Madhya Pradesh.

(3.) THEREAFTER , a show-cause notice dated May 13, 1964, was issued by the respondent No. 1 whereby the petitioner was informed that upon scrutiny of the record for the year of account, relevant for the asst. yr. 1955-56, it was noticed that the petitioner had not declared any dividend in spite of available surplus. The petitioner was further informed by this notice that the respondent No. 1 proposed to apply the provisions of s. 23A of the Act to the petitioner, and called upon the petitioner to show cause within a week why such an order should not be made. At a hearing on June 24, 1964, the petitioner's representative contended before the respondent No.1 that the latter had no jurisdiction to pass any order under s. 23A, in view of the provisions of s. 34(3) of the Act. The respondent No. 1, however, threatened to proceed in pursuance of the said show-cause notice and thereupon the petitioner obtained this rule nisi.