RASHID AHMAD K S Vs. INCOME TAX INVESTIGATION COMMISSION

JUDGEMENT

(1.) A rule was issued to the Income-tax Investigation Commission constituted under Act XXX of 1947 and Mr. Rama Nand Jain, Authorised Official, at the instance of K. S. Rashid and Son and others to show cause why writs of certiorari and prohibition should not issue to quash the orders passed by the Commission.

(2.) THE affidavit of K. S. Rashid Ahmad shows that the Central Government on the 31st of December, 1947, referred the cases of K. S. Rashid and Son, K. S. Rashid Ahmad, Saeed Ahmad, Saeeda Begum and Mrs. Zafar Mohd. to the Income-tax Investigation Commission for investigation and report. THE partnership K. S. Rashid and Son is stated to have started on the 5th of May, 1934. Mrs. Zafar Mohd. died on the 7th of January, 1946, and it is alleged that that partnership was thereby dissolved, and on the following day a new firm came into existence which took over the assets and liabilities of the old partnership. THE partners of this new firm, it is stated in paragraph 20 of the affidavit, were K. S. Rashid Ahmad, Saeed Ahmad and Saeeda Begum. A regular partnership deed was drawn up which has been registered under Section 26A of the of the Income-tax Act.

(3.) ON the 15th of July, 1949, an application was filed before the Authorised Official that the amendment of the Act by the Ordinance did not cover the period after the 31st of March, 1943, and, therefore, he could not make any investigation in regard to that period but the account books were shown to him under protest. ON the 7th September, 1949, three applications are stated to have been filed. The copies of these applications were not filed before us, but it is stated that one was with regard to the affairs of Mrs. Zafar Mohd. that no investigation could take place in regard to her as she was dead, the other was with regard to the affairs of Saeeda Begum that she being a new partner and not having been assessed before was not subject to the jurisdiction of the Commission; and the third that the new firm was not liable to have its affairs investigated into.