Judgement

P. B. GAJENDRAGADKAR J. : These four appeals arise from four petitions filed against the Income-tax Officer, Nellore Circle, Nellore, respondent 1, in respect of the proceedings taken by him against three firms under S. 34, Income-tax Act (hereinafter called the Act). The firm M/s. Bellapu Audeyya and Chilla Pitchayya was formed on 20-4-1936, and it was dissolved on 31-3-l948. It consisted of two partners, Chilla Pitchayya and Bellapu Audeyya. Chilla Pitchayya had started another firm in the name and style of G. Pitchayya & Co. with another partner R. Subba Rao. This firm was formed on 30-7-1941, and it was dissolved on 31-3-1949. Bellapu Audeyya and Chilla Pitchayya had also formed another firm along with five other partners which carried on its business in the name and style of Prabhat Textiles. This firm was formed on 1-12-1941, and it was dissolved by a decree of the civil Court passed on 22-12-1949, the dissolution having taken effect from 1-1-1949. All the three firms were carrying on business in yarn and cloth and all of them were registered under S. 26A of the Act. It appears that for the purpose of assessing the income of these firms for the years 1943-44 and 1944-45, respondent 1 was satisfied on making enquiries that each of the three firms was a separate entity and so separate assessment orders were passed in respect of the income of each one of them for the said two years.

2. Subsequently on 14-8-1951, respondent 1 issued notice against the firm of Prabhat Textiles under S. 34 of the Act. In the proceedings thus commenced, respondent 1 held that the firm of Prabhat Textiles was a fictitious firm and that the real partners were C. Pitchayya and B. Audeyya. As a result of this finding, respondent 1 cancelled the registration of the said firm under R. 6B of the Income-tax Rules and passed fresh orders of assessment against the said firm on the basis that it was an unregistered firm for the assessment years 1943-44 and 1944-45.on 14-8-1952, and 25-2 1953, respectively. Similar action was taken by respondent 1 in respect of the two other firms on the same dates.

3. Thereupon Y. Narayayana Chetty, one of the partners of the Prabhat Textiles file a writ petition in the High Court of Madras, No. 613 of 1952, against respondent 1 under Art. 216 of the Constitution and prayed that the High Court should issue a writ of prohibition or any other appropriate writ, order or direction prohibiting the first respondent from continuing the proceedings as per his notice of 14-8-1951, and from enforcing the order of fresh assessment passed in the said proceedings on 14.8-1952, in regard to the assessment year 1943-1944. In respect of the same firm Chilla Pitchayya sought for a similar relief by Writ Petition No. 201 of 1953 in regard to the proceedings and assessment order for the assessment year 1944-45. The same Chilla Pitchayya also filed Writ Petitions Nos. 629 of 1952 and 202 of 1953 in respect of the proceedings taken and fresh assessment orders passed against the two remaining firms for the assessment years 1943-44 and 1944-45 respectively. The four petitions were heard together by the High Court and were dismissed on 5-3-1954. The petitioners then applied for and obtained from the High Court a certificate under Art. 133 read with O. 45, Rr. 1, 2, 3 and 8 that the value of the subject-matter in the petitions before the High Court as well as of the appeals before this Court was more than Rs. 20,000. It is with this certificate that the four appeals have come before this Court. Y. Narayana Chetty is the appellant in Civil Appeal No. 317 of 1957 whereas Chilla Pitchayya is the appellant in Civil Appeals Nos. 318, 319 and 320 of 1957.

4. In the High Court it was urged by the appellants that the proceedings taken under S. 34 against each of the said firms were without jurisdiction and void. It was also contended that the cancellation of the registration of each of the firms was similarly void and without jurisdiction inasmuch