RALEIGH INVESTMENT CO LTD Vs. GOVERNOR-GENERAL IN COUNCIL

JUDGEMENT

(1.) This is an appeal by the Raleigh Investment Co. Ltd., from a judgment of the Federal Court of India in its civil appellate jurisdiction reversing a decree passed by a Special Bench of the High Court of Calcutta in its ordinary original civil jurisdiction.

(2.) The suit in which that decree was passed was brought by the appellant against the respondent, the Governor-General in Council, claiming repayment of Rs. 4,35,295-5-0, part of a larger sum paid by the appellant under an assessment to income-tax made upon it. The basis of this claim was that in the computation of assessable income effect has been given to a provision of the Income-tax Acts which in the submission of the appellant was ultra vires the Indian Legislature, and that the assessment was therefore wrong.

(3.) The respondent contended first, that the impugned provision was not ultra vires the Indian Legislature and second that, whether the impugned provision was or was not ultra vires, the High Court in its ordinary civil jurisdiction was precluded from entertaining the suit by reason of S. 226, Government of India Act, 1935, and also by reason of S. 67, Income-tax Act, 1922.