Summarize the following court judgment. o. 296 of 1951. Appeal against the Judgment and Order dated the 16th January	 1951	 of the High Court of Judicature for the State of Rajasthan at Jodhpur (Nawal Kishore and Kanwar Lal Bapna JJ.) in D. B. Civil Miscellaneous Case No. 15 of 1950. M. C. Setalvad	 Attorney General for India (G. N. Joshi	 with him) for the appellant. N.C. Chatterjee	 Senior Advocate (G. L. Agarwal	 with him) for the respondent. December 16. The Judgment of the Court was delivered by PATANJALI SASTRI C. J. This is an appeal from an order of the High Court of Rajasthan directing by writ issued under article 226 of the Constitution that the Union of India	 appellant herein	 should not levy income tax on the income of the respondent accruing	 arising or received in Rajasthan (excluding the area of the former covenanting State of Bundi) prior to April 1	 1950. The respondent resides and carries on business in the District of Jodhpur in Rajasthan which is one of the States specified in Part B of the First Schedule to the Constitution (hereinafter referred to as Part B States). In May	 1950	 the respondent was required to file a return of his income for the previous year	 that is the year ending March 31	 1950	 for assessment to income tax	 and subsequently was also asked to produce the relevant account books before the Income tax Officer	 Jodhpur	 on August 11	 1950. Thereupon the respondent presented the petition	 out of which this appeal arises	 on August 23	 1950	 invoking the	 jurisdiction of the High Court under article 226 of the Constitution for the issue of "a writ of mandamus or certiorari or other appropriate writ"directing the appellant not to take a any action under the Indian Income tax Act	 1922	 (hereinafter referred to as the Indian Act) as amended by the Indian Finance Act	 1950	 for the assessment or levy 544 of income tax on the income which accrued or arose to the respondent or was received by him prior to April 1	 1950	 on the ground that such income was not liable to be charged "under the provisions of any law validly in force in Rajasthan. " The petition was heard by a Division Bench of the High Court (Nawal Kishore and Kanwarlal Bapna JJ.) who accepted the petition and issued a writ as already stated	 overruling sundry preliminary objections to which no reference need be made as they have not been raised by the appellant before us. As is well known	 after the Indian Independence Act	 1947	 came into force	 various Indian States (as they were then known) which had been recognised	 subject to certain restrictions and limitations not material here	 as independent principalities were brought into the Dominion of India from	 time to time under arrangements with their Rulers	 and this process of accession and integration . resulted in the expansion of the territory of India in successive stages. So far as Rajasthan is concerned	 the Rajaputana States	 as they were then called	 integrated their territories into the United State of Rajasthan	 and the new State acceded to the Dominion of India by an Instrument of Accession executed by the head of the State (Rajpramukh) on April 15	 1949	 and accepted by the Governor General of India on May 12	 1949. By clause (3) of the Instrument the Rajpramukh accepted "all matters enumerated in Lists I and III of the Seventh Schedule to the Act (the Government of India Act	 1935) as matters in respect of which the ]Dominion Legislature may make laws for the United State	 provided that nothing contained in the said Lists or in any other provisions of the Act shall be deemed to empower the Dominion Legislature to impose any tax or duty in the territories of the United State or prohibit the imposition of any duty or tax by the Legislature of the United State in the said territories.": This limitation on the power of the Dominion Legislature thus imposed by agreement between the two States was given effect to as a 545 constitutional limitation by section 101 of the Government of India Act	 1935	 as adapted by the Governor General in August	 1949	 in exercise of the powers conferred on him by the Indian Independence Act	 1947. That section provided that "nothing in this Act shall be co nstrued as empowering the Dominion Legislature to make laws for an acceding State otherwise than in accordance with the Instrument of Accession of that State and any limitations contained therein. " The position thus was that the Dominion Legislature had no power to make any law imposing any tax or duty in the territories of the United State of Rajasthan. In July	 1949	 however	 the. Indian States Finances Enquiry Committee appointed by the Government of India submitted their report recommending	 among other things	 the financial integration of the acceding States and the imposition of the Indian income tax in their territories as from the first day of April	 1950. Meanwhile the framing of the Constitution of India by the Constituent Assembly	 which also included duly appointed representatives of the acceding States	 was Hearing completion	 and in November	 1949	 the Rajpramukh	 in exercise of his powers as the duly constituted head of the State	 issued a Proclamation whereby he declared and directed that the "Constitution of India shortly to be adopted by the Constituent Assembly of India shall be the Constitution for the Rajasthan State as for the other parts of India	 and shall be enforced as such in accordance with the tenor of its provisions and that the provisions of the said Constitution shall	 as from the date of its commencement	 supersede and abrogate all other constitutional provisions inconsistent therewith which are at present in force in this State. " The Constitution of India then came into force on January 26	 1950. It repealed the Government of India Act	 1935	 including section 101 thereof	 and brought all the Part B States	 including Rajasthan	 within the Union of India	 incorporating the territories of all those States in the "territory of India" as defined in article 1 (2). It created a new Central 546 Legislature for the Union called Parliament and empowered that Legislature by article 245 "to make laws for the whole or any part of the territory of India" subject to the provisions of the Constitution and	 by article 246 (1) read with entry No. 82 of List 1	 it conferred "exclusive power" to make laws with respect to"taxes on income other than agricultural income". In exercise of that power and pursuant to there commendation of the Indian States Finances Enquiry Committee referred to above	 Parliament enacted the Finance Act	 1950 (Act XXV of 1950) providing by section 2 (1) that income tax and super tax shall be charged "for the year beginning on the first day of April	 1950	 (i.e., 1950 51) at the rates specified in Parts I and 11 respectively of the First Schedule to that Act. Section 3 made certain amend ments in the Indian Act with effect from the first day of April	 1950. " Among these was the substitution of the present clause (14 A) in section 2 in the place of clause (14 A) as it stood before. The new clause defines " taxable territories " as respects different periods so as to correspond to the successive stages of expansion of the territory of India after the Indian Independence Act	 1947. The material part of that clause as amended runs thus: (14 A) I taxable territories ' means . (a). . (b). . (c). (d)as respects any period after the 31st day of March	 1950	 and before the 13th day of April	 1950	 the territory of India excluding the State of Jammu and Kashmir and the Patiala and East Punjab States Union	 and (e) as respect any period after the 12th day of April	 1950	 the territory of India excluding the State of Jammu and Kashmir: Provided that the taxable territories shall be deem ed to include (a). 547 (b)the whole of the territory of India excluding the State of Jammu and Kashmir (i) as respects any period	 for the purposes of sections4 A and 4 B	 (ii) as respects any period after the 31st day of March	 1950	 for any of the purposes of this Act	 and (iii)as respects any period included in the previous yearfor the.purpose of making any assessment of the yearending on the 31st day of March	 1951	 or for any subsequent year. " The definition	 it may be observed in passing	 is by no means a model of perspicuity. Parts of it seem redundant and even mutually contradictory. For instance	 (leaving out the State of Jammu and Kashmir altogether in this discussion) whereas clause (d) excludes the Patiala and the East Punjab States Union from the taxable territories as respects the period from April 1	 1950	 to April 12	 1950	 subclause (ii) of clause (b) of the proviso would seem to include that State also within such territories as respects the same period	 and while clauses (d) and (e) of the substantive part of the definition when read together seem apt by themselves to bring the territory of India within the taxable territories as respects the period after March 31	 1950	 sub clause (ii) of clause (b) of the proviso apparently seeks to bring about the same result by means of a fiction. Now	 the scheme of the Indian Act is to tax a person resident in the taxable territories during the previous year on all his income of the previous year whether accruing within or without the taxable territories	 and to tax a person not resident in the taxable territories upon his income accruing within the taxable territories during the previous year. Residence in the taxable territories has to be determined in accordance with the provisions of section 4 A which	 in the case of an individual	 takes into account his having been in such territories within the five years preceding the year of assessment. If Rajasthan was a taxable territory in the year 1949 50	 the respondent would be chargeable in 72 548 respect of his income whether derived within or without .Rajasthan. It is	 however	 argued on his behalf by Mr. Chatterjee that section 3 of the Finance Act	 1950	 having substituted the amended clause .(14 A) " with effect from the first day of April	 1950	 Rajasthan was not a taxable territory during the accounting year 1949 50, and that no income tax being admittedly leviable in that State on the income accruing there in that year, the new clause (14 A) should not be construed so as to impose liability to pay Indian incometax on such income. According to learned counsel the word assessment" in sub clause (iii) of clause (b) of the proviso must be taken to mean only computation of income and not the imposition of liability. In support of the construction he relied on the decision of the Privy Council in Commissioner of Income tax	 Bombay vs Khemchand Ramdas(1) where it was said that the word "assessment" was used in the Indian Income tax Act as meaning "sometimes the computation of income	 sometimes the determination of tax payable and sometimes the whole procedure laid down in the Act for imposing liability on the taxpayer." Mr. Chatterjee reinforced the argument by referring to the repealing and saving provisions of section 13 which he read as keeping alive a State law of incometax in.force in any Part B State "for the purposes of levy	 assessment and collection of tax" not only in respect of the income of the year 1948 49 but also on the income of	1949 50 which is the previous year for assessment for the year ending March 31	 1951 (i.e.	 1950 51). The result	 therefore	 according to him	 was that where any State law of income tax was in force in any Part B State before April 1	 1950	 so as to make the income of 1949 50 chargeable to tax	 the amended clause (14 A) authorised the computation of such income for the purpose of taxation as	 for example	 in the State of Bundi. But where	 as in the rest of the territory of Rajasthan	 no income tax was leviable on the income of the year 1949 50	 the amendment by the Finance Act	 1950	 which took effect only from April 1	 1950	 did not	 on its true construction	 bring (1) I.L.R. 549 the income of the year 1949 50 into charge under the Indian Act. This argument found favour with the learned Judges in the High Court but we are unable to accept it. A short answer to it is provided by sub clause (i) of clause (b) of the proviso under which the whole of the territory of India including Rajasthan is to be deemed taxable territory for the purpose of section 4 A of the Indian Act "as respects any period. " The words "any period" cannot be taken to mean "any period after March 31	 1950	 for the period referred to in the next clause is expressly limited in that sense. ' Those limiting words cannot be read into sub clause (i) which must, therefore, be understood as referring to any period before or after March 31, 1950. As already indicated, residence in the taxable territories within the meaning of section 4 A can, in some cases, relate back to as many as five years before the year of assessment, and that is obviously the reason why the period mentioned in sub claure (i) is not limited as in sub clause (iii) of clause (b) of the proviso. Indeed, if the words any period" id sub clause (i) were intended to mean any period after March 31	 1950	 that sub clause of the proviso which enacts a fiction	 would be wholly unnecessary	 for clauses (d) and (e) of the substantive part of the definition taken together clearly have the effect	 as already stated	 of making the territory of India a taxable territory 	 during that period. If Rajasthan was thus a part of the taxable territories during such period preceding the assessment year	 1950 51	 as would be necessary to make the respondent "resident" in such territories within the meaning of section 4 A	 then the income accruing or. arising	 to him in Rajasthan during the year 1949 50 would be taxable though	 Rajasthan was not part of the taxable territories in that year	 for	 in the case of a person resident in the taxable territories	 income accruing or arising to him without the taxable territories is also chargeable to tax under section 4	 sub section (1) clause @b) sub clause.(ii) of the Indian Act. This aspect of the matter does not appear to have been sufficiently 550 appreciated in the court below. The learned Judges say: "The first clause in proviso (b) means to say that the earlier residence in Part B States will be taken to be residence in taxable territories while taking account of the residence for a certain prior period." Having thus correctly construed the clause	 they failed to realise its effect on the operation of section 4 (1) (b) (ii)	 for they proceeded to consider the construction of proviso (b) (iii) observing: "The next important question calling for determination is whether Rajasthan became taxable territory during the financial year in this case	 i.e.	 1949 50	 for	 if the answer is in the negative	 the petitioner must be held to be ' Immune from liability to assessment on the income of that year. " This	 as pointed out above	 is a misconception. It may well be that proviso (b) (iii) was designed to bring the income		 profits and gains of the year 1949 50 into charge under section 4 (1) (a) and section 4(1) (c)	 in which cases receipt or accrual	 as the case may be		 in the taxable territories is the test of chargeability. it may be mentioned here that the exemption from tax under section 14 (2) (c) of the Indian Act of income accruing within Part B States was abrogated	 except as regards the State of Jammu and Kashmir	 by the amendment of that provision with effect from the first day of April	 1950. Even assuming it were necessary for the Revenue to bring the case within proviso (b) (iii) in order to sustain the charge on the respondent 's income accruing in Rajasthan during the year 1949 50	 we are of opinion that the construction	 placed by the learned Judges on that clause cannot be supported. They assume that proviso (b) (iii) is a provision authorising assessment of income tax	 and proceed to discuss what the word " 'assessment" in that context should be taken to mean. Charge of income to tax and its computation are matters governed by other provisions of the Indian Act. All that section 2 (14 A) does is to define what the expression "taxable territories" means in certain cases and for certain purposes wherever that expression is used in the various provisions of the Indian Act. 551 And as the expression is used in the charging section 4 in connection with the conditions which are to determine liability to tax	 sub clause (iii) of clause (b) of the definition must	 when read with section 4 of the Indian Act	 have reference to chargeability of income. The result is that sections 3 and 4 of the Indian Act read in the light of the definition in proviso (b) to the amended section 2 (14 A) and section 2 of the Indian Finance Act	 1950	 authorise the imposition of the Indian income tax and super tax on the income derived 'by the respondent in they are 1949 50 in the territory of Rajasthan. As already observed	 the learned Judges below	 in order to reinforce their construction of sub clause (iii) of clause (b) of the proviso	 read section 13 of the Finance Act as keeping alive the law of income tax in force in any Part B State for purposes of levy	 assessment	 and collection of tax in respect of the income of 1949 50. This	 in our opinion	 is not the effect of section 13 on its true construction. After referring to the decision of the Privy Council to which reference has been made	 the learned Judges say "There are three stages in connection with the imposition of a tax. The first is the declaration of liability	 the second is the assessment and the third is the collection. This clause makes the territory a taxable territory for the purpose of making any assessment but not for the purpose of chargeability. The chargeability is left to arise by some other law and that law is the previous State law referred to in section 13	 Finance Act	 1950. It arises in a twofold manner. In the first place	 under section 6 of the General Clauses Act the repeal of the State law as from April 1	 1950 did not affect any liability incurred under the repealed enactment and secondly	 though the language used in section 13 is very complicated	 a careful perusal makes it clear that the State law is not only kept alive for the purpose of levy	 assessment and collection of	 incometax the income of the year 1949 50	 but also for the above purposes in the subsequent year. The previous year. in relation to the	 subsequent year 1951 52 is the 552 year 1950 51 and the period not included therein would be the year 1949 50 and the State law is directed to apply if the income remains untaxed under the Indian law. . Therefore if somebody is liable to income tax in any territory where such law was in force prior to April 1	 1950	 but certain period has not been included while assessing him to income tax but the chargeability existed	 the proviso (b) (iii) would become applicable for such period as he was not charged but the liability had accrued	 and the territory would become taxable territory for the purpose of making any assessment of the year 1950 51. It will be seen that the basis on which this reasoning proceeds is that section 13 of the Finance Act	 1950	 	saves the operation of the States laws relating to income tax in Part B States in the year 1949 50 for the purpose of levy	 assessment and collection	 and it is those laws that imposed the liability to tax on the income accruing in those States during that	 year. This is a misapprehension of the true meaning and effect of section l3. That section	 so far as it is material here	 runs thus: "Repeal and savings. (1) If immediately before the 1st day of April	 1950	 there is in force in any Part B State other than Jammu and Kashmir or in Manipur	 Tripura or Vindhya Pradesh or in the merged territory of Cooch Behar any law relating to income tax or supertax or tax on profits of business	 that law shall cease to have effect except for the purposes of the levy	 assessment and collection of income tax and super tax in respect of any period not included in the previous year for the purposes of assessment under the Indian Income tax Act		 1922	 for	 the year ending on the 31st day of March	 1951	 or	 for any subsequent year. . .A close reading of that provision will show that it saves the operaton of the State law only in respect of 1948 49 or any earlier period 'which is the period not included in the previous year (1949 50) for the purposes of asessment for the year 1950 51. In other words	 there remained no State law of income tax in operation	 in any Part B State in the year 1949 50	 No doubt	 553 there is the phrase "or for any subsequent year" immediately following the words "for the year ending on the 31st day of March	 1951. " Relying on that phrase	 the learned Judges argue thus : Take the "subsequent year" 1951 52. The previous year for making an assessment for that year would 'be 1950 51. The year 1949 50 "is a period not included" in that previous year. Therefore	 section 13 saves the operation of any law relating to income tax in force in any Part B State in 1949 50 "for the purposes of the levy	 assessment and collection of income tax and super tax in respect of that period	 that is to say, the income accruing in 1949 50 in a Part B State continues to be chargeable under the State law. But the learned Judges failed to see that, on this reasoning, the same thing could be said of the income of 1950 51, 1951 52, etc. if you take the subsequent year" to be 1952 53	 1953 54	 etc. and work backwards. On this construction of section 13	 the State law of income tax would continue to operate for an indefinite period even after the commencement of the Constitution during which period the Indian income tax and super tax would be leviable. In other words	 the State law of income tax in Part B States for the levy	 assessment and collection would be in operation side by side with the Indian Act even after the financial integration of those States with the Indian Union a result manifestly repugnant to the policy underlying the Finance Act	 1950. No argument	 therefore	 could be logically based on the words "or for any subsequent period"	 which evidently were added with a view to catch the income of any broken. period prior to April 1	 1950	 which might otherwise escape assessment both under the repealed. State law and the newly introduced Indian Act. Nor can section 6 of the General Clauses. Act	 1897	 serve to keep alive the liability to pay tax on the income of the year 1949 50 assuming it to have accrued under the repealed State law	 for a "different intention" clearly appears in sections 2 and 13 of the Finance Act read together as indicated above. In any case no question of keeping any such liability alive could arise in the present case as admittedly no State law of 554 income tax was in operation in the territory of Rajasthan	 except the former State of Bundi. On this view the whole basis of the reasoning of the learned Judges below falls to the ground. Even so	 it was contended	 the Finance Act	 1950	 in so far as it purports to authorise such levy is ultra vires and void as Parliament was not competent under the Constitution to make such a law. The argument was put in two ways. In the first place	 it was said broadly that as the Constitution could not operate retrospectively as held by this court in Kesava Madhava Menon 's case(1)	 the power of legislation conferred by the Constitution upon Parliament could not extend so as to charge retrospectively the income accruing a prior to the commencement of the Constitu is a fallacy. While it is true that the tion. This Constitution has no retrospective operation	 except where a different intention clearly appears	 it is not correct 'to say that in bringing into existence new Legislatures and conferring on them	 certain powers of legislation	 the Constitution operated retrospectively. The legislative powers conferred upon Parliament under article 245 an article 246 read with List I of the Seventh Schedule could obviously be exercised only after the Constitution came into force and no retro spective operation of the Constitution is involved in the conferment of those powers. But it is a different thing to say that Parliament in exercising the powers thus acquired is precluded from making a retroactive law. The question must depend upon the scope of the powers conferred	 and that must be determined with reference by which	 affirmatively	 to the "terms of the instrument the legislative powers were created and by which	 negatively	 ' they were restricted": [Queen vs Burah (2)]. Article 245 of the Constitution enacts that subject to its provisions Parliament may make laws for the whole or any part of the territory of India and article 246 proceeds to distribute legislative powers as between Parliament and the State Legislatures in the (1) ; (2) 51.A. 178	 555 country. Thus	 these articles read with entry No. 82 of List I of the Seventh Schedule empower Parliament to make laws with respect to taxes on income for the whole of the territory of India	 and no limitation or restriction is imposed in regard to retroactive legislation. It is	 therefore	 competent for Parliament to. make a law imposing a tax on the income of any year prior to the commencement of the Constitution. It was said	 however	 that the line of decisions like	 Queen vs Burah(1)	 which defined the powers of legislatures created by the British Parliament	 could have no application to the Union Parliament which came into life as a new legislature on the commencement of the Indian Constitution. It could not be assumed that such a legislature had the power of making a law having retrospective operation in relation to a perio prior to its birth unless the Constitution itself clearly and explicitly conferred such power. In support of this argument certain observations of one of the Judges in an Australian case [Exparte Walsh and Johnson ; In re Yates(2)] were relied on. We are unable to accept the argument. Our Constitution	 as appears from the Preamble	 derives its authority from the people of India	 and learned counsel conceded that it was open to the people to confer on the legislatures established by the Constitution	 which they framed through their representatives	 power to make laws having operation in relation to periods prior to the commencement of the Constitution. But	 it was insisted	 such a power should be given in clearly expressed terms. There is	 however	 no question here of the Constitution operating retrospectively in bringing into existence the Union Parliament or the legislatures of the States. The only question is 'What powers have been conferred upon these legislatures by the representatives of the people who framed the Constitution and	 in determining that issue	 the principles laid down in cases. like Queen vs Burah (1) apply in full foree. The observations in the Australian case	 to which reference has been made	 seem to us (1) 5 I.A. 178. (2) ; 	 at pp 80	 81	 73 556 to go too far and cannot be accepted as sound constitutional doctrine. Nor can it be said	 in strictness	 that the Finance Act	 1950	 is retroactive legislation. That Act	 as already noticed	 purports by section 2 to charge income tax and super tax at specified rates "for the year beginning on the last day of April	 1950". The case	is thus one where the statute purports to operate only prospectively	 but such operation has	 under the scheme of the Indian income tax law	 to take into account income earned before the statute came into force. Such an enactment cannot	 strictly speaking	 be said to be retroactive legislation	 though its operation may affect acts done in the past. Dealing with a statute authorising the removal of destitute widows from a parish	 it was observed in an English case [Queen vs St. Mary	 Whitechapel(1) 1: "It was said that the operation of the statute is confined to persons who have become widows after the Act was passed and that the presumption against a retrospective statute being intended supported this construction. But we have before shown that the statute is in its direct operation prospective as it relates to future removals only and that it is not properly called a retrospective statute because a part of the requisites for its action is drawn from time antecedent to its passing. " It is	 however	 unnessary to pursue this aspect of the matter further as we have held that Parliament has the power to make retroactive laws. Secondly	 it was said that section 101 of the Government of India Act	 1935	 which gave effect to the stipulation in the Instrument of Accession against the imposition by the Dominion Legislature. of any tax or duty in the territory of the United State of Rajasthan	 was kept alive	 notwithstanding its repeal by article 395 of the Constitution	 by section 6 of the 	 [which is made applicable to the interpretation of the Constitution by article 367 (1)] as a " right" or "privilege" acquired under the repealed enactment	 and so (1) (1848) i2 Q.B. 120	127; ii6 E.R. 8ii	 814. 557 continued to operate under article 372 (1) as a con stitutional limitation on the power of Parliament	 with the result that Parliament had no power to impose tax contrary to section 101 of the Government of India Act	 1935. The argument is somewhat ingenious but there are obvious difficulties in the way of its acceptance. For one thing	 section 101 of the Government of India Act	 1935	 created no right or privilege in the subjects of the United State of Rajasthan which	 notwithstanding the repeal of that section	 could be regarded as still enuring for their benefit. Section 101 merely imposed a restriction upon the power of the Dominion Legislature to make laws for an acceding State inconsistent with the stipulations contained in the Instrument of Accession. When that section along with the rest of the Government of India Act	 1935	 was repealed by the new Constitution	 which has created new legislatures with power to make retroactive laws	 it is idle to suggest that rights or privileges acquired while the old Constitution Act was in force are preserved for ever for that must be the result of the argument by section 6 of the General Clauses Act	 which can have no application to such cases. Furthermore	 it will be recalled that the Proclamation made by the Rajpramukh as Ruler of Rajasthan on 23rd November	 1949	 declared and directed that the Constitution of India when brought into force "shall be the Constitution for the Rajasthan State" and it expressly "superseded and abrogated all other constitutional provisions inconsistent therewith" which were then in force. The competency of the Rajpramukh as the Ruler of the State to accept the Constitution of India as governing that State also was not challenged before us	 and it is manifest that	 after such declaration and direction	 no I restriction imposed on the Dominion Legislature by the Instrument of Accession and enforced by section 101 of the Government of India Act could prevail against the legislative powers conferred on Parliament by the Constitution of India. The difference in the constitutional position which previously existed between the Provinces and the acceding: States has thus 558 disappeared except	 of course	 in regard to matters in which such distinction has been preserved by the Constitution itself	 e.g.	 by article 238 and article 371. It follows that the amendment of section ' 2 clause (14 A) of the Indian Act	 by the Finance Act	 1950	 so as to authorise the levy of tax on income accruing in the territory of Rajasthan in the year 1949 50 is within the competence of Parliament and therefore valid. We accordingly allow the appeal	 and set aside the judgment of the High Court. We make no order as to costs. Appeal allowed.

Respondent was residing and carrying on business in the District of Jodhpur in Rajasthan	 a Part B State	. His income arising therein during the accounting year 1949 50 was sought to assessed to income tax 'for the year 1950 51 under the Indian Income tax Act 'as amended by the Indian Finance Act. He presented ' a petition under article 226 to the High Court praying 542 for the issue of a writ directing the Union of India not to assess income tax on his income which had accrued to him prior to April 1	 1950	 because no income tax was leviable in Rajasthan (except in the State of Bundi) under any provision of law in force there. The High Court having accepted his petition	 the Union of India preferred the present appeal to the Supreme Court. Section 3 of the Finance Act 1950 (Act XXV of 1550) made certain amendments in the Indian Income tax Act with effect from the 1st day of April	 1950" and substituted therein the present el. (14 A) in section 2 in place of previous el. (14 A) defining "taxable territories". Held	 that under sub el. (i) of el. (b) of the proviso	 the whole of the territory of India including Rajasthan is to be deemed taxable territory for the purpose of section 4 A of the Indian Income tax Act "as respects any period" The words "any period" mean any period before or after March 31	 1950. Respondent was therefore resident in the taxable territories during the accounting year 1949 50 and his income	 whetherderived within or without the taxable territories was taxable under section 4 sub section (I) cl. (b) sub el. (ii) of the Indian Income tax Act. Further	 all that section 2 (14 A) does is to define what the ex pression "taxable territories" means in certain cases and for certain purposes. wherever that expression is used in the various provisions of the Indian Income tax Act	 and as the expression is used in the charging section 4 in connection with the conditions which are to determine liability to tax	 sub el. (iii) of cl. (b) of the definition must	 when read with section 4 of the Indian Income tax Act	 have reference to chargeabiiity of income and not merely to its computation	 and therefore sections 3 and 4 of the Indian Income tax Act read in the light of the definition in proviso (b) to the amended section Y. (14 A) and section 2 of the I inance Act	 1950	 authorise the imposition of Indian income tax and super tax on the income derived by the respondent in the year 1949 50 in the territory of Rajasthan. Held also	 that while it is true that the Constitution has no restrospective operation except where a different intention clearly appears	 it is not correct to say that in bringing into existence now legislatures and conferring on them certain powers of legislation	 the Constitution operated retrospectively. Articles 245 and 246 reda with entry No. 82 of List I of the Seventh Schedule empower Parliament to make laws with to taxes on income for the whole territory of India and limitation or restriction is imposed in regard to retroactive legislation &ad it is	 therefore competent for Parliament to make a law imposing a tax on the income of any year prior to the the amendment of section 2	 cl (14 A) of the Indian income tax Act by the Finance act by the Finance act the Indian Income tax Act by the Finance 	1950	 so as to the authorise the levy of the authorise the levy of tax on income accuring in the territory of Rajasthan in the year 1949 50 ie therefore valid.