Law:

Section:

Section 4 of the Income-tax Act, 1961 [Corresponding to section 3 of the Indian Income-tax Act, 1922], read with section 13 of the Indian Finance Act, 1950 - Income - Chargeable as - Whether article 277 of Constitution does not preclude Parliament from making law providing for levy and collection of income-tax and super-tax under Mysore Income-tax Act, through authorities appointed under 1922 Act - Held, yes - Whether, therefore, Income-tax Officer appointed under 1922 Act, had jurisdiction to assess assessee to income-tax and super-tax in respect of income of period prior to commencement of Constitution accruing in State of Mysore - Held, yes FACTS The ITO, appointed under the 1922 Act, assessed the appellant/assessee to income-tax and super-tax on his income accruing prior to 1-4-1950, in the State of Mysore. The ITO exercised jurisdiction in the state by virtue of section 13 of the 1950 Act. The appellant filed writ petition challenging the jurisdiction of the ITO to assess the appellant on ground that the Union Parliament is prohibited by article 277 of the Constitution by necessary implication from making a law grafting on the Mysore income-tax law the machinery for assessment and collection provided under the 1922 Act, for purposes of assessment thereunder. The petition was dismissed by the High Court. On appeal to the Supreme Court: HELD While article 277 of Constitution undoubtedly authorises the continued levy of taxes lawfully levied by the Government of the State before the commencement of 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 1922 Act also functioning in the State for assessments subsequent to 1-4-1950. Both as a measure of…

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