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TMI Blog1960 (3) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is Debendra Nath Dutta and the respondents are the Income-tax Investigation Commission constituted under section 3 of the Act (hereinafter referred to as the Commission) and the Union of India. The facts giving rise to the appeal are that Captain N. N. Dutta, a brother of the appellant was the managing director of a concern called the Bengal Immunity Co. Ltd. During the last war he made large profits which were neither disclosed to nor detected by the Income-tax Department and thus escaped income-tax on what may be termed "concealed income". On March 23, 1949, the Commission made a report to the Central Government under section 5(4) of the Act asking for reference to itself of the case of Captain N. N. Dutta. Almost simultaneousl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was unmarried. Another elder brother of his had died sometime before leaving a widow Charunalini Dutta. As a result of the investigation it was found that a substantial portion of the concealed profits was invested by the late Captain N. N. Dutta in the names of his nephews, the sons of Kamini Kumar Dutta and their respective wives, his niece Maya and his widowed sister-in-law Charunalini Dutta. These profits were invested in Government securities and bank deposits. On the death of Captain N. N. Dutta his two brothers Kamini Kumar Dutta and the appellant Debendra Nath Dutta were brought on record as legal representatives. Kamini Kumar Dutta wrote to the Commission that he had no connection with the business of his late brother but as his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended a concession in regard to Kamini Kumar Dutta and his branch of the family. The amount to be recovered from that branch came to Rs. 29,74,480. The Commission in its report made it quite clear that the appellant was no party to this composition and no order was being made against or in regard to him but should any assets of the deceased be found to be in his possession or may subsequently come into his possession as a result of the litigation which he was threatening to commence or otherwise, the Government would be entitled to recover from him the full tax on the concealed income, i.e., on Rs. 58,24,023, "whether in the first instance" or so much of it as may not be recovered from the other branch. Thereupon the Central Government pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tely were reduced to three. As there were 16 assessment orders the appellant was asked by the Commissioner to submit 16 applications which he did but by an order dated October 3, 1951, he rejected the applications as in his opinion no question of law arose out of the various assessment orders. The appellant then applied to the High Court of Calcutta under section 8(5) of the Act read with section 66(2) of the Income-tax Act and rules were issued by the High Court but on March 3, 1952, they were discharged. Against this order the appellant applied to this court for special leave but on September 28, 1953, leave was refused. In his affidavit the appellant has stated that this court had observed that the appellant's proper remedy was for speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any assets which might come into his possession thereafter. Reliance was placed on certain decided cases to support that argument. The first case is Shaikh Sahad v. Krishna Mohan Basak. In that case a co-sharer landlord brought a suit for arrears of rent against the heirs of the original tenant of whom two appeared and the third did not. A money decree was passed against the absent heir for the entire claim but it was held by the High Court that the suit being against the heirs they must be taken to have been recognised as one body of registered tenants holding a single holding and it was not a case of a joint contract which could be enforced against any of the joint contractors and section 43 of the Contract Act was inapplicable where par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... branch of the family and that falls under section 8A(1) of the Act. It provides that in any case pending before the Commission if any person applies to it at any time to have the case or any part thereof settled in so far as it relates to him the Commission shall, if it is of the opinion that the settlement applied for may be approved, refer the matter to the Government and if the Government accepts the terms, the Commission shall have the terms thereof recorded and the investigation so far as it relates to matters covered by such settlement shall be deemed to be closed. This section obviously means that the settlement is with and in regard to the person who offers the settlement and the investigation is closed in regard to him alone. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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