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Issues:
Challenge to income tax assessment for the years 1953-54 and 1954-55 under sections 45 and 46 of the Indian Income-tax Act. Detailed Analysis: The petitioner filed two petitions under Article 226 seeking a writ of certiorari to quash the proceedings of the Income-tax Officer and the Commissioner of Income-tax for the assessment years 1953-54 and 1954-55. The Income-tax Officer had passed ex parte assessment orders against the petitioner, fixing his assessable income and demanding taxes for both years. The petitioner appealed to the Appellate Assistant Commissioner of Income-tax, who substantially reduced the assessable income and tax due. However, the Income-tax Officer did not issue separate demand notices after the reduction by the Appellate Assistant Commissioner. The Collector proceeded to recover the tax based on the original certificate issued by the Income-tax Officer, despite the reduced tax liability determined by the Appellate Assistant Commissioner. The main contention was whether a fresh notice of demand was necessary after the Appellate Assistant Commissioner reduced the taxable income and tax payable. The petitioner argued that without a new notice of demand, he could not be treated as a defaulter, and the Collector had no jurisdiction to collect the tax based on the original certificate. The judgment referred to a Calcutta High Court case emphasizing the necessity of issuing fresh demand notices when assessments are altered in appeals. The court held that the respondents were not entitled to treat the petitioner as a defaulter without a new notice of demand after the Appellate Assistant Commissioner's decision. Therefore, the proceedings of the Collector based on the original certificate were deemed illegal, and separate demand notices should have been issued according to the revised assessments. Consequently, the court allowed the writ petitions, directing a writ to be issued as requested by the petitioner. The respondents were ordered to bear the petitioner's costs, with an advocate's fee fixed at Rs. 100 for each petition. Judge Ahmed Ali Khan concurred with the judgment.
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