9911796707
TMI Blog1960 (8) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the previous year, 1949-50. The appellant claimed exemption under section 14(2)(c) of the Indian Income-tax Act, 1922, as it stood before the amendment in 1953, contending that the exemption stood good even after the amendment. This claim was rejected by the High Court, which was moved under article 226 of the Constitution. Hence this appeal. Prior to the integration of the Kotah State into the United State of Rajasthan in 1949, there was no income-tax law in force in Kotah State. Till the formation of the State of Rajasthan, there was no such law in force in any part of Rajasthan, except Bundi State. The Indian Finance Act of 1950 made the Indian Income-tax Act, 1922, applicable to the whole of India, except the State of Jammu and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was also decided by this court against Madan Gopal Kabra. In this appeal, this point alone is argued, and it is contended that the point is still open for decision. Section 14(2)(c), as it stood before the amendment in 1953, read as follows : "The tax shall not be payable by an assessee... (c) in respect of any income, profits or gains accruing or arising to him within a Part B State, unless such income, profits or gains are received or deemed to be received in or are brought into the taxable territories in the previous year by or on behalf of the assessee, or are assessable under section 12B or section 42." The amendment provided : "In section 14 of the principal Act in clause (c) of sub-section (2), for the words and letter 'P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income accrued prior to April 1, 1950, and it was still exempt, because the exemption was withdrawn only from April 1, 1950. In our opinion, both the arguments have no substance, and the position indicated by this court in the passage cited earlier, represents the true state of the law. To begin with, the exemption is in respect of liability to tax in any year of assessment, and the exemption in the assessment year 1950-51 was in regard to the income in the previous year, For the same reason, the withdrawal of the exemption in the assessment year 1950-51 conversely affected the income of the previous year, 1949-50, which is the subject-matter of tax in this case. The next argument misconceives the nature of the Indian Finance Act, 1950. B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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