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TMI Blog1967 (5) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act ", calling upon the appellants to submit a return of the standard profits and the profits actually made during the chargeable accounting period from October 30, 1943, to October 30, 1944, on the ground that the profits had been under-assessed. The appellants carried on a business constituting themselves into a partnership called " Guduthur Thimmappa & Brothers " in 1934. On the date of commencement of the business the partners were G. Thimmappa, G. Ekambarappa, and G. Padmanabhan, each of the partners representing their respective joint families. The business of the firm was in Bellary town and the partners of the firm were residents of Bellary town during the period the firm was carrying on business. The firm was dissolved on Octob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct extended, when first promulgated, to the territory of former British India. After the Constitution came into force, section 1(2) of the Act, was adapted so as to extend the operation of the Act " to the whole of India except Part B States " by the Adaptation of Laws Order, 1950. After the formation of new States in pursuance of the States Reorganisation Act, 1956 (37 of 1956), sub-section (2) of section 1 of the Act was adapted by the President by Adaptation of Laws (No. 3) Order, 1956, dated December 31, 1956. Section 1(2) of the Act as adapted read as follows : " It extends to the whole of India except the territories which immediately before the 1st November, 1956, were comprised in Part B States." The result of the adaptation was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the commencement of this Act, repeals any enactment hitherto made or hereafter to be made, then, unless a different intention appears, the repeal shall not---... (c) affect any right, privilege, obligation or liability acquired, accrued or incurred under any enactment so repealed ; or. . . " Section 3(19) of the General Clauses Act defines an " enactment " as including " a Regulation and also as including any provision contained in any Act or any such Regulation as aforesaid." The argument was also stressed on behalf of the appellants that even if section 6(c) of the General Clauses Act was applicable there was no " liability incurred or accrued " as there was no assessment of escaped profits before November 1, 1956, when the adaptati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch 28, 1942, on the ground that the Indian Finance Act, 1939, was not in force during the assessment year 1939-40 in Chota Nagpur which was a partially excluded area. On June 30, 1942, a regulation was promulgated by which the Indian Finance Act of 1939 was brought into force in Chota Nagpur retrospectively as from March 30, 1939. Thereupon the Income-tax Officer made an order holding that the income of the assessee for the year 1939-40 had escaped assessment and issued to the assessee a notice under section 34 of the Income-tax Act. The validity of the notice was questioned. It was held by this court that though the Finance Act was not in force in that area in 1939-40, the income of the assessee was liable to tax in that year and, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Act, 1956 (37 of 1956), all the provisions of the Excess Profits Tax Act, 1940, remained in operation in Bellary district in spite of the Adaptation of Laws Order, 1956. Section 53 of the Andhra Pradesh Act states as follows : The provisions of Part II shall not be deemed to have effected any change in the territories to which any law in force immediately before the appointed day extends or applies, and territorial references in any such law to the State of Madras or of Mysore shall, until otherwise provided by a competent Legislature or other competent authority, continue to have the same meaning. Section 119 of the States Reorganisation Act reads as follows : " The provisions of Part II shall, not be deemed to have effected any ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o continue the operation of that Act so far as Bellary district was concerned. The effect of section 119 of the States Reorganisation Act was to preserve the territorial operation of the law which was immediately in force before the date of the promulgation of that Act until such law was repealed by the competent legislature or a competent legislative authority. There is great force in the argument advanced by Mr. Narasaraju on this point. But it is not necessary for us to express any concluded opinion on this aspect of the case because we have already given reasons for holding that the appeal must be dismissed on the ground that the Act stood repeated by reason of the Adaptation of Laws Order, 1956, and the liability to pay tax on escaped ..... X X X X Extracts X X X X X X X X Extracts X X X X
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