Case: D. R. Madhavakrishnaiah Vs. The Income-Tax Officer, Bangalore

1. These two connected appeals arise out of applications made to the High Court of Judicature at Bangalore under Art. 226 of the Constitution challenging the jurisdiction of the Income-tax Officer, Special survey Circle, Bangalore, to assess the appellant to income tax and super-tax on his income accruing prior to April 1, 1950, in the State of Mysore and praying for the issue of appropriate writs in that behalf. The applications were dismissed by the court and leave to appeal having been refused, the appellant has brought these appeals by special leave of this court.It is a matter of admission that the officer making the assessment was an officer appointed under the Indian Income-tax Act, 1922, and that in making such assessments he was applying the income-tax law in force in the State of Mysore down to the end of the year of account 1948-49. The officer was exercising jurisdiction in the State by virtue of the proviso to S. 13 of the Indian finance Act, 1950,

Reasoning: While Art. 277 undoubtedly authorises the continued levy of taxes lawfully levied by the Government of the State before the commencement of the Constitution and their application to the same purposes as before, even after the Constitution came into force, there is nothing in the article to warrant any implication that such taxes should continue to be levied, assessed and collected by the same State authorities as before the Constitution. As the High Court rightly pointed out, it would obviously have been inconvenient and unnecessary to have officers appointed under the Mysore Income-tax Act continuing to function only in respect of the earlier assessment years side by side with officers appointed under the Indian Income-tax Act also functioning in the State for assessment subsequent to April 1, 1950.Both as a measure of economy and with a view to smoother and efficient management, it was obviously necessary and desirable that the changeover form the Mysore Income-tax to the Indian Income-tax Act should be in the way provided by S. 13 of the Indian Finance Act, 1950. We find nothing in Art. 277 of the Constitution to preclude Parliament making a law providing for the levy and collection of income-tax and super-tax under the Mysore Act through authorities appointed under the Indian Income-tax Act. Accordingly, we hold that the income-tax Officer, Special survey Circle, Bangalore, had jurisdiction to assess the appellant to income-tax and super-tax in respect of the income of the period prior to the Commencement of the Constitution.