Law:

Section:

Section 222 of the Income-tax Act, 1961 [Corresponding to section 46(2) of the Indian Income-tax Act, 1922] - Collection and recovery of tax - Certificate proceedings - Assessment years 1944-45 to 1947-48 - Rules were directed against proceedings pending against petitioners assessees before Collector for their arrest and detention for recovery of certain amount on account of income-tax and excess profits tax - Certificate proceedings were commenced under Public Demands Recovery Act at instance of Collector for recovery of sums said to be in arrears - Subsequently, Collector issued notice in accordance with provisions of Order XXI, rule 37, of the Code of Civil Procedure 1908 on these persons to show cause why they should not be arrested and detained - Petitioners took objection that assessment under 1922 Act was invalid as there was no valid law under which assessment could be made - It was pointed out that Finance Acts enacting rates for assessment were extended to excluded area, where business of petitioners was carried on, under section 92(1) of Government of India Act, 1935 several days later when Act came into force and that Governor could not give any retrospective operation to any law extended therein under section 92(1) of 1935 Act - Whether fact that Finance Act became law in India was of no consequence, for on date assessments were made Finance Act had already become law - Held, yes - Whether, therefore, Collector had jurisdiction to continue proceedings against petitioners - Held, yes FACTS The rules were directed against proceedings pending against the petitioners before the Collector for their arrest and detention for recovery of certain amount on account of income-tax and excess profit tax. This sum was made up of different sums said to be due from a Hindu undivided family of which N was the karta, on account of income-tax for the years 1944-45, 1945-46 and 1947-48 and on account of several assessments on account of excess profit tax. In each case the ITO sent a certificate to the Collector, stating that a certain sum was due on account of income-tax or excess profit tax and that it was in arrears. In one case the amount was mentioned as due from,…

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