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Issues Involved:
1. Jurisdiction of the court to issue a writ of prohibition. 2. Validity of proceedings under section 44 of the Cochin Income-tax Act, 1117, and section 47 of the Travancore Income-tax Act, 1121. 3. Authority for re-assessment under section 13 of the Finance Act, 1950. 4. Bona fides of the re-assessment proceedings. Detailed Analysis: Issue 1: Jurisdiction of the Court to Issue a Writ of Prohibition The court examined whether it had the jurisdiction to issue a writ of prohibition despite the existence of alternative remedies under the income-tax law, which forms a self-contained code. The court concluded that the existence of an alternative remedy does not bar the issuance of a writ of prohibition in appropriate cases. This conclusion is supported by judicial decisions, including R. v. Comptroller-General of Patents: Ex-parte Parke, Davis & Co., and other cases that establish that prohibition can be issued even if an appeal is available. The court rejected the argument that it had no jurisdiction whatsoever to issue such a writ. Issue 2: Validity of Proceedings under Section 44 of the Cochin Income-tax Act, 1117, and Section 47 of the Travancore Income-tax Act, 1121 The court considered whether the proceedings initiated under section 44 of the Cochin Income-tax Act, 1117, and section 47 of the Travancore Income-tax Act, 1121, were valid. The petitioner argued that these sections had become void and inoperative with the passing of the Finance Act and the Constitution of India. However, the court held that the combined effect of Article 277 of the Constitution and section 13 of the Indian Finance Act, 1950, was to validly continue the operation of these Acts for the purposes of levy, assessment, and collection of income-tax and super-tax for the specified period. Therefore, the proceedings initiated by the Income-tax Officers were considered valid. Issue 3: Authority for Re-assessment under Section 13 of the Finance Act, 1950 The petitioner contended that the power to re-assess had ceased to exist under section 13 of the Finance Act, 1950, as it did not specifically mention re-assessment. The court rejected this contention, stating that the terms "levy, assessment, and collection" include all processes by which tax is ascertained, demanded, and realized, which encompasses re-assessment. Hence, the authority for re-assessment was upheld. Issue 4: Bona Fides of the Re-assessment Proceedings The petitioner argued that the re-assessment proceedings were initiated without any bona fides and without any grounds. The court examined whether the notices for re-assessment were issued in consequence of "definite information" leading to a "discovery" of under-assessment. The court found that Exhibit VIII provided sufficient definite information to attract the provisions of section 44 (1) of the Cochin Income-tax Act, 1117, and section 47 of the Travancore Income-tax Act, 1121. The court also dismissed the argument that the information was second-hand and derived from within the department, as well as the argument that Exhibit VIII, being under appeal, should not be relied upon. Conclusion The court dismissed O. P. Nos. 53, 56, and 57 of 1952, concluding that the proceedings initiated under the relevant sections of the Cochin and Travancore Income-tax Acts were valid and within jurisdiction. The court also found no merit in the petitioner's arguments regarding the authority for re-assessment and the bona fides of the proceedings. The petitions were dismissed without costs.
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