Equality Before Law: amended tax provision assimilates the class into ordinary assessment, barring continuation of special investigatory procedure.

Amendment of the ordinary income-tax provision assimilated the previously separately treated class into the regular assessment regime by specifying the relevant period and monetary threshold, thereby removing the distinguishing features that justified special investigatory procedure under the earlier Act. Where a later enactment covers the same class and procedure, continuing the earlier, more onerous procedure is impermissible because it creates an unequal, discriminatory regime contrary to the principle of equality before the law. Petitioners are entitled to relief and a writ should prohibit further proceedings under the special investigation statute.

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Issues: Whether, after the coming into force of the Indian Income-tax (Amendment) Act, 1954 (which inserted a new sub-section in Section 34 of the Income-tax Act covering the same class of persons), the provisions of Section 5(1) of the Taxation on Income (Investigation Commission) Act, 1947 can continue to be applied so as to permit the Commission to proceed against the petitioners under the special procedure of Act XXX of 1947.

Analysis: The amended Section 34 brings within the ordinary Income-tax assessment procedure the class of persons previously dealt with under Section 5(1) of Act XXX of 1947 by specifying the relevant period and a monetary threshold, thereby removing the distinctive characteristics that were relied upon to justify differential procedural treatment. Where two enactments operate on the same field and the later statute covers the same class of persons and procedures, the basis for continuing a special, more prejudicial procedure under the earlier enactment is removed. Proceedings under the special procedure of the earlier Act, if continued after the amendment eliminates the distinguishing classification, become discriminatory in the sense prohibited by Article 14 and cannot be continued against persons who now fall within the scope of the amended ordinary law.

Conclusion: The petitioners are entitled to relief; proceedings before the Investigation Commission under Section 5(1) of the Taxation on Income (Investigation Commission) Act, 1947 cannot be continued against them in view of the enactment of the Indian Income-tax (Amendment) Act, 1954 which brings the same class of persons within amended Section 34 of the Income-tax Act, and an appropriate writ prohibiting further proceedings under Act XXX of 1947 should be issued in their favour.

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