Summarize the following court judgment. 140 and 177 to 191 of 1959. Petitions under Article 32 of the Constitution of India for enforcement of Fundamental Rights. M. R. M. Abdul Karim and K. R. Choudhury	 for petitioners. K. N. Rajagopala Sastri and D. Gupta	 for respondents. 513 1961. March 22. The Judgment of the Court was delivered by KAPUR	 J. These are sixteen petitions under article 32 of the Constitution challenging the legality of the imposition of surcharge imposed on the income of the assessees under the Finance Acts of 1942	 1943	 1944 and 1945. The assessment relates to four assessment years 1942 43	 1943 44	 1944 45 and 1945 46. The petitioners are four partners of a firm named Mohammedaly Sarafaly & Co.	 Madras	 which was carrying on business in hardware	 stocks	 shares	 etc. For the assessment years 1942 43 to 1945 46 this firm was treated as a registered firm under the Indian Income tax Act and therefore the partners were assessed on their respective shares of the profits from the business of the firm. All assessments were completed before 1949 and total income for the purpose of assessment for those four years was about Rs. 29	00	000. In 1955 the petitioners under a 'Voluntary Disclosure Scheme ' with regard to profits which had escaped assessment made a disclosure of their income and proceedings were taken under section 34 of the Income tax Act. In the month of April	 1959	 there was a reassessment on all the four partners and the total income for the four assessment years thus came to about Rs. 35 lakhs which included Rs. 29 lakhs already assessed. On that income	 income tax	 super tax	 and surcharge were levied. The surcharge	 according to the petition was Rs. 3	82	791. It is this surcharge which is impugned as being	 without the authority of law inasmuch as the then Federal Legislature	 it is submitted	 was not competent to levy the surcharge. Provision for surcharge was made under section 8(1) of the Finance Act	 1942 (Act XII of 1942). This section may now be quoted: Section 8(1) "Subject to the provisions of sub sections (2) and (3)	 (a) income tax for the year beginning on the 1st day of April	 1942	 shall be charged at the rates specified in Part I of Schedule II increased in the cases to which subparagraph (b) of paragraph A 65 514 and paragraph B of that part apply with a sur charge for the purposes of the Central Government at the rate specified therein in respect of each such rate of income tax	 and (b) rates of super tax for the year beginning on the 1st day of April	 1942	 shall	 for the purpose of section 55 of the Indian Income tax Act	 1922	 be those specified in Part II of Schedule II increased in the cases to which paragraphs A	 B and C of that Part apply by a surcharge for the purposes of the Central Government at the rate specified therein in respect of each such rate of super tax. " It was contended that the Federal Legislature had no power under the Government of India Act	 1935	(25 and 26 Geo V	 Ch. 42)	 to impose a surcharge "for the purposes of the Central Government". The legislative power of the Federal Legislature was given in section 100 of the Government of India Act	 1935	 and the power to tax income was contained in item 4 of List I of the Seventh Schedule which was as follows: "Taxes on income other than agricultural income. " Part VII of the Government of India Act	 1935	 deals with Finance	 Property and Suits and the first chapter deals with Finance. The relevant section which has been relied upon by the petitioners	 i.e.	 section 138(1) of that Act	 is in that Part which deals with Distribution of Revenues between the Federation and the Federal Units. That section reads: Section 138(1) "Taxes on income other than agricultural income shall be levied and collected by the Federation. . . . Provided that (a). . . . . . . . . . . (b) the Federal Legislature may at any time increase the said taxes by a surcharge for Federal purposes and the whole proceeds of any such surcharge shall form part of the revenues of the Federation. " It was submitted that according to this section the power of the Federal Legislature to impose a surcharge was only for Federal purposes; that by section 8(1) of the Finance Act	 1942	 and similar provisions in 515 the other Finance Acts of three following years	 the surcharge had been levied "for the purposes of the Central Government" and that the terms "the purposes of the Central Government" and "for Federal purposes" were not the same but were two different concepts. Section 311 of the Government of India Act	 1935	 deals with Interpretation but "Federal purposes" is Dot defined in that section. In subsection (3) of section 313 which is in Part XIII	 dealing with Transitional Provisions	 it is provided: Section 313(3) "References ' in the provisions of this Act for the time being in force to the Governor General and the Federal Government shall	 except as respects matters with respect to which the Governor General is required by the said provisions to act in his discretion be construed as references to the Governor General in council	 and any reference to the Federation	 except where the reference is to the establishment of the Federation	 shall be construed as a reference to British India	 the Governor General in Council	 or the Governor general	 as the circumstances and the context may require. " On the basis of this section it was urged that the term "Federal purposes" in section 138(1)(b) of the Government of India Act	 1935	 means the purposes of the Federal Government	 i.e.	 of the Governor General in Council or the Governor General as the case may be and that in the context it is a term of lesser amplitude than the term "purposes of the Central Government". "Central Government" in section 3(8ab)(a) of the 	 was defined as follows: Section 3 (8ab) "Central Government ' shall (a) in relation to anything done or to be done after the commencement of of the Government of India Act	 1935	 mean the Federal Government;". "Federal Government" was defined in the in section 18 a as follows: Section 18 a " 'Federal Government ' shall (a) in relation to anything done or to be done after the commencement of of the Government of India Act	 1935	 but before the establishment of the Federation	 mean	 as respects matters 516 with respect to which the Governor General is by and under the provisions of the said Act for the time being in force required to act in his discretion	 the Governor General and as respects other matters	 the Governor General in Council; and shall include (i) in relation to functions entrusted under section 124(1) of the said Act to the Government of a Province	 the Provincial Government acting within the scope of the authority given to it under that subsection; and (ii) in relation to the administration of a Chief Commissioner 's Province	 the Chief Commissioner acting within the scope of the authority given to him under section 94(3) of the said Act;". From these sections it was argued that the term "Federal Government" in the Government of India Act 1935	 only meant the Governor General or the Governor General in Council as the case may be but under the definition in the the term "Central Government" did not only denote the Governor General or the Governor General in Council as the case may be but also included for certain purposes the Provincial Governments acting within the scope of the authority given to them under a. 124(1) of the Government of India Act	 1935. This argument	 in our opinion	 is wholly fallacious. The power of the Federal Legislature to legislate was conferred by section 100	 sub sections (1) and (2). The first sub section deals with the power of the Federal Legislature to legislate in regard to items contained in the First List which was exclusively within the power of the Federal Legislature. The Federal Legislature therefore had the power to legislate in regard to any subject contained in List I and item 54 relating to taxes on income was in that List. It has been held that the items have to be given the widest possible amplitude. But it was submitted that the power under item 54 howsoever wide it may be is subject to the limitation contained in section 138(1)	 proviso (b). Now "Federal purposes" is not defined in the Government of India Act	 1935	 nor is it defined in the General 517 Clauses Act. But there is sufficient indication in section 138 itself that the amounts recovered as surcharge were to form part of the Revenues of the Federation and such Revenues were to be expended for the purposes there indicated. Under section 124(4) of the Government of India Act	 1935	 where powers and duties are conferred by section 124 upon a Province or a Federated State there shall be paia by the Federation to the Province or the Federated State such sum as may be agreed Hence by the definitions given in . . . Hence by the given in the no different concept of the words "purposes of the Central Government" was intended from what was intended by the use of the words "Federal purposes" in section 138(1)(b) of the Government of India Act	 1935. These petitions therefore fail and are dismissed with costs. One hearing fee. Petitions dismissed.

The petitioners as partners of a registered firm were assessed to income tax for the relevant assessment years. Thereafter they made a disclosure of their income under a "Voluntary Disclosure Scheme" regarding profits which had escaped assessment	 and on reassessment of the disclosed income income tax	 super tax and surcharge were levied. The levy of surcharge but not income tax and super tax was challenged as unauthorised. Held	 that the power to legislate for levy of tax on income was conferred upon the Federal Legislature by section 100 sub sections (1) and (2) of the Government of India Act	 1935	 and item 54 of List I of the Seventh Schedule and the Federal Legislature was competent under that entry to legislate in regard to the levy of a surcharge on tax; section 138(1) proviso (b) did not restrict the amplitude of that legislative power. The term "Federal purposes" in section 138 is not defined in the Government of India Act nor in the ; but there is sufficient indication in the section itself that surcharges were to form part of the Revenues of the Federation and such Revenues were to be expended for the purposes therein mentioned. The concept of the words "purposes of the Central Government" under the was not different from what was intended by the use of the words "Federal purposes" in section 138(i) proviso (b) of the Government of India Act.