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TMI Blog1954 (4) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... pon him. Section 4(1) of Bihar Act, XIX of 1947, as it was originally enacted reads as follows: "Subject to the provisions of Sections 5, 6, 7 and 8 and with effect from such date as the Provincial Government may, by notification in the Official Gazette, appoint, being not earlier than thirty days after the date of the said notification, every dealer whose gross turnover during the year immediately preceding the commencement of this Act, on sales which have taken place both in and outside Bihar, exceeded Rs. 10,000 shall be liable to pay tax under this Act on sales which have taken place in Bihar after the date so notified: Provided that the tax shall not be payable on sales involved in the execution of a contract which is shown to the sati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Tax Officer to impose tax on contracts which when executed did not invoke the provision of the sales tax?" This application was allowed and the Board of Revenue has stated a case for the opinion of the High Court on the following question of law: "Whether the Amending Act (Bihar Sales Tax Amendment Act VI of 1949) which was extended to Chotanagpore on the 22nd of March, 1949, would govern the present proceedings, which were commenced on the 15th October, 1948?" On behalf of the assessee Mr. P.R. Das made the submission that the Governor of Bihar could not by notification under Section 92(1) of the Government of India Act give retrospective effect to any piece of legislation. In support of his argument counsel referred to a passage of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax is founded upon Section 4 of the Sales Tax Act which is the charging section. Section 13 of the Act only provides a machinery for the determination of the amount of the tax and any irregularity in the issue of the notice would not affect the legal (1) [1949] F.C.R. 595 at p. 614. validity of the assessment. That was the view taken by the Federal Court in Chatturam v. Commissioner of Income-tax(1), where the material facts were almost parallel to those of the present case. In that case notices under Sections 22(1) and 22(2) of the Income-tax Act were issued on or about the 20th of April, 1940. At that time the Indian Income-tax Act of 1939 and the Finance Act of 1940 were not in force in the Chotanagpore Division of the State of Bihar. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay the tax, however, are not conditional on the validity of the notice. Suppose a person, even before a notice is published in the papers under Section 22(1), or before he receives a notice under Section 22(2) of the Income-tax Act, gets a form of return from the Income-tax office and submits his return, it will be futile to contend that the Income-tax Officer is not entitled to assess the party or that the party is not liable to pay any tax because a notice had not been issued to him. The liability to pay the tax is founded on Sections 3 and 4 of the Income-tax Act which are the charging Sections. Section 22 etc. are the machinery sections to determine the amount of tax." For these reasons we hold that the Amending Act (Act VI of 1949) w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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