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TMI Blog1961 (3) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ly fallacious. Under section 124(4) of the Government of India Act, 1935, where powers and duties are conferred by section 124 upon a Province or a Federated State there shall be paid by the Federation to the Province or the Federated State such sum as may be agreed. Hence by the definitions given in the General Clauses Act no different concept of the words " purposes of the Central Government " was intended from what was intended by the use of the words " Federal purposes " in section 138(1)(b) of the Government of India Act, 1935. Appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... to levy the surcharge. Provision for surcharge was made under section 8(1) of the Finance Act, 1942 (XII of 1942). This section may now be quoted : " 8. (1) Subject to the provisions of sub-sections (2) and (3),-- (a) income-tax for the year beginning on the 1st day of April, 1942, shall be charged at the rates specified in Part I of Schedule II increased in the cases to which sub-paragraph (b) of paragraph A and paragraph B of that Part apply by a surcharge for the purposes of the Central Government at the rate specified therein in respect of each such rate of income-tax, and (b) rates of super-tax for the year beginning on the 1st day of April, 1942, shall, for the purpose of section 55 of the Indian Income-tax Act, 1922, be those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpose a surcharge was only for Federal purposes ; that by section 8(1) of the Finance Act, 1942, and similar provisions in the other Finance Acts of the three following years, the surcharge had been levied " for the purposes of the Central Government " and that the terms " the purposes of the Central Government " and " for Federal purposes" were not the same but were two different concepts. Section 311 of the Government of India Act, 1935, deals with Interpretation but " Federal purposes " is not defined in that section. In sub-section (3) of section 313 which is in Part XIII, dealing with Transitional Provisions, it is provided : " 313. (3) References in the provisions of this Act for the time being in force to the Governor-General and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ters with respect to which the Governor-General is by and under the provisions of the said Act for the time being in force required to act in his discretion, the Governor-General, and as respects other matters, the GovernorGeneral in Council...... and shall include-- (1) in relation to functions entrusted under section 124(1) of the said Act to the Government of a Province, the Provincial Government acting within the scope of the authority given to it under that sub-section ; and (ii) in relation to the administration of a Chief Commissioner's Province, the Chief Commissioner acting within the scope of the authority given to him under section 94(3) of the said Act. " From these sections it was argued that the term " Federal Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Federation and such revenues were to be expended for the purposes there indicated. Under section 124(4) of the Government of India Act, 1935, where powers and duties are conferred by section 124 upon a Province or a Federated State there shall be paid by the Federation to the Province or the Federated State such sum as may be agreed. Hence by the definitions given in the General Clauses Act no different concept of the words " purposes of the Central Government " was intended from what was intended by the use of the words " Federal purposes " in section 138(1)(b) of the Government of India Act, 1935.
These petitions, therefore, fail and are dismissed with costs. One hearing fee.
Petitions dismissed. X X X X Extracts X X X X X X X X Extracts X X X X
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