AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
1960 (9) TMI 10
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.... to as the Income-tax Act), the following questions to the High Court of Travancore-Cochin : Whether on the facts and in the circumstances of the case, there was any evidence before the Commission to come to the conclusion to which it came in its report ? (2) On the facts and in the circumstances of the case, was the order C. No. 76(1) I.T./51 dated October 25, 1951, of the Government of India passed under the provisions of section 8(2) of the Travancore Taxation on Income (Investigation Commission) Act read with section 3 of the Opium and Revenue Laws (Extension of Application) Act of 1950, a legal and valid order ? (3) Whether on the facts and in the circumstances of the case, the order passed by the Income-tax Officer in pursuance ....
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....report to direct that proceedings be taken under the various Acts including the Income-tax Act, in respect of any period commencing after August 16, 1939. By sub-section (4) of section 8, all assessment or reassessment proceedings taken in pursuance of the direction under sub-section (2), the findings recorded by the Commission on the case or on the points referred to it were, subject to the provisions of sub-sections (5) and (6), to be final. Sub-section (5) of section 8 provided for a reference to the High Court on any question of law arising out of any order made by the Commission. The State of Travancore-Cochin merged with the Indian Union on March 7, 1949, but the Income-tax Act and the Investigation Act continued to apply to that ar....
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....um and revenue laws to certain parts of India. By section 2 of that Act, amongst others, the Taxation on Income (Investigation Commission) Act (XXX of 1947) (enacted by the Central Legislature), and all rules and orders made thereunder which were in force immediately before the commencement of Act XXXIII of 1950 were extended to the rest of India except the State of Jammu and Kashmir, but by section 3, in so far as it is material, it was provided that : " If immediately before the commencement of this Act there is in force in any Part B State other than Jammu and Kashmir any law . . . . . . corresponding to the Taxation on Income (Investigation Commission) Act, 1947 (XXX of 1947), that law, shall continue to remain in force with the follo....
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....t hereinbefore were referred to that court. In the view of the High Court, there was evidence on which the Commission could arrive at the conclusion recorded by it. Evidently, the High Court was incompetent, in answering the question, to enter upon a review of the evidence in exercise of its advisory jurisdiction and Mr. Viswanatha Sastri on behalf of the appellants has fairly not attempted to challenge the answer recorded by the High Court on the first question. The Government of India had, on a consideration of the report of the Commission, directed on October 25, 1951, that assessment proceedings be started against the appellants. Section 8(2) of the Investigation Act, in so far as it is material, reads as follows : "After considerin....
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....Commission by the Travancore-Cochin Government and report was made to that Government by the Commission, and the authority of the Government of Travancore Cochin to take action on the report having been conferred upon the Central Government by section 3(c) of the Opium and Revenue Laws (Extension of Application) Act, the Central Government was prima facie competent to direct that proceedings under the Income-tax Act as may be justifiable be taken against the appellants. But Mr. Viswanatha Sastri appearing on behalf of the appellants contests that view on two grounds : (1) that the Central Government may direct proceedings to be taken under the Income-tax Act only if the report was made by a Commission appointed under the Taxation on Incom....
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....rder passed by the Government of India on October 25, 1951, is not in any way inconsistent with the order dated February 14, 1950. Both the orders direct that steps be taken for recovery of the amount of income-tax due from the appellants. But, if, as appears evident from section 8(4) of the Investigation Act, liability to pay income-tax could arise only on an effective order of assessment, the Income-tax Officer not having assessed the income before the demand notice was issued, the Government of India was, in our judgment, competent to direct that proceedings be taken for assessing the liability of the appellants to pay tax consistently with the provisions of the Income-tax Act. The order passed by the Government of India on October 25, 1....