LexBHOPAL SUGAR INDUSTRIES LTD. versus THE INCOME-TAX OFFICER, BHOPAL
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
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8UPRE:\fE COURT REPORTS
[ 1961]
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direction is given under s. 8(2), there is not.bing in that
provision which prevents rectification of that ordn.
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By sub-s. (4) of s. 8 of the ln\'cstiga.tion Act, the
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findi11gH recorded by the Commission in cases or points
Thr Cnmmi"''"" referred t-0 theri1 are macle final in all aRsessment or
0/ /llcowHo·., reassessment proceedings. The Act has, by sub-s. (2) of
"1-'"".'· Jrnvau- s. 8 remored.the bar of limitation which arose by
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fore to the Income I ax Officer to reopen the assess.
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ment proceedings not w ithslll.nding any lapse of time
and the prev ions order of assessment did not opPrate
as a bar to such reassessment.
The High Court was
therefore in our judgment right in recording its
answers on the three questions submitted by the Com-
missioner of Income Tax. In that view, the appPal
fails and is dismissed with costs.
Appeal dismissed.
THE BHOPAL SUGAI{ INDUSTRIE8 LTD.
v.
THE J'.'iCOME-TAX. OFFICEH, BHOPAL
(8. K. DAS, j\f. HIDAYATULLAH, K. c. DAS GUPTA,
J. c. SHAil ANO N. RAJAOOPALA AYYANOAR, J.J.)
[)irrcfion.< by superior Tribtmals-If could be refused lo be
carried 011t-J>ri11ci'plrs (if adn1inistrafion of justice.
The Income-tax Appellate Tribunal in the exercise of its
appellate jurisdiction gave certain directions to the respo1•dent.
an Income-tax Officer, in connection \\'ith the ascertainment of
the market value of sugarcane grown by the appellant at their
farm and use<l by them for the manufacture of sugar. Th~ appel-
lant asked the Income-tax Officer to give effect to the said order
and directions of the Tribunal but was informed that no relief
coul<l be given. Thus the Income-tax Officer failed to carry out
the directions of the Tribunal.
Held, that the refusal to carry out the directions which a
superior Tribunal had given in exercise of its appellate powers
was in effect a denial of justice and was furthermore destructive
1 S.C.R. SUPREME COURT REPORTS
475
of one of the basic principles in the administration of justice
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based as it is in this country on a hierarchy of courts ; and the
result of such refusal would lead to chaos in the administration The Bhopal Sugar
of justice.
Indil<stries Ltd.
CIVIL
APPELLATE
JURISDICTION: Civil Appeal The 1n:~me-tax
No. 407 of 1956.
Officer. Bhopal
Appeal from the judgment and order dated Febru-
ary 14, 1956, of the former Judicial Commissioner's
Court, Bhopal, in Misc. Civil Case No. 24'of 1955.
Sanat P. Mehta and S. N. Andley, for the appellant.
K. N. Rajagopa.l Sastri and D. Gupta, for the
respondent.
1960. September 2.
The Judgment of the Court
was delivered by
. S. K. DAS J.-This is an appeal on a certificate
s. K. Das J.
under Art. 133 of the Constitution. The short ques-
tion for decision is. whether the learned Judicial Com-
missioner of Bhopal rightly dismissed a petition under
Art. 226 of the Constitution made by the Bhopal
Sugar Industries, Limited, hereinafter refered to as
the appellant company, praying for the issue of an
appropriate order or direction in the nature of a writ
of mandamus to compel the Income-tax Officer,
Bhopal, respondent herein, to carry out certain direc-
tions given by the Income-tax Appellate Tribunal,
Bombay, to the said officer in an appeal preferred by
the appellant company from an order of assessment
ma.de against it by the respondent.
The relevant facts are these. The appellant com-
pany -carries on the business of manufacturing and
selling sugar in various grades and quantities. It has
its factory at Sehore which was formerly in the
Bhopal State and is now situate in the State of
Madhya Pradesh. It purchased sugar-cane from local
cultivators and also grew its own sugar-cane in farms
situate in that State, such sugar-cane being used for
its manufacture of sugar. During the year of account
ending on Sept9mber 30, 1950, the appellant company
purchased 7, 72,217 ma.unds of sugar-cane from local
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Sl:PRE:IIE COVRT REPORTS
[1961]
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cu!Livators at various purchasing c•,ntrcs, 14 in num-
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ber, situate at a distance of about 8 t-0 22 miles from
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oopa ·'" ga1 .
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1,,d"'"'" Ltd. its 1actory.
e price pat was Rs. 1-4·6 per maund,
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that being the price fixed by the then Sta.to of Bhopal.
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