1971 (9) TMI 22

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..... Ltd. On March 5, 1956, that company declared interim dividends to its shareholders. Under that declaration Seth Multani Mal Modi was entitled to Rs. 60,265 as interim dividends. The dividend warrants were despatched on June 21, 1956, and the interim dividends declared were confirmed by the general meeting of the company on January 17, 1957. Seth Multani Mal Modi died on October 22,1957. Thereafter, the assessment of Seth Multani Mal Modi for the assessment years 1956-57 and 1957-58 was taken up. There it was contended that the dividends referred to earlier must be considered as the income of Multani Mal Modi during the assessment year 1957-58. The Income-tax Officer rejected that contention and considered that income as having been receiv....

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....t been served on appellant No. 2 and that it was necessary to issue notices to all the legal representatives of Multani Mal Modi. He directed that the Income-tax Officer may proceed to assess the assessees in accordance with law. On April 1, 1962, the Income-tax Act, 1961, came into force. On January 7, 1964, the Income-tax Officer issued notices to the appellants under section 148 of that Act. Aggrieved by those notices the appellants moved the High Court under article 226 of the Constitution praying that those notices be quashed, as according to them the Income-tax Officer was not competent to issue those notices. That petition came up for consideration before a single judge of the High Court. The learned judge feeling that an importan....