Medapa, C.J.—The petitioners in these four petitions pray under the provisions of article 226 of the Constitution for the issue of a writ of prohibition against the respondents from proceeding with the enquiry pursuant to the notice under section 34 of the Mysore Income Tax Act or in the alternative for a writ of certiorari for quashing the said notice.

2. The impugned proceedings were initiated by the Income Tax Officer Urban Circle, and by the Special Income Tax Officer, Bangalore, on 15th March, 1951, 29th March, 1952, 2nd December, 1953, and 24th February, 1954, respectively for the purpose of the Mysore Income Tax Act, the escaped income of the petitioners. The petitioners contend that the Income Tax Officer had no jurisdiction or authority to start such proceedings. The argument in support of this contention is two-fold :

(1) that section 34 of the Mysore Income Tax Act stood repealed on and from 1st April, 1959, and that therefore the notice issued under that section by the Income Tax Officer after its repeal was without authority, and

(2) that even otherwise, the agreement made between the President of India and the Rajpramukh of Mysore on 2nd February, 1950, under article 278 of the Constitution of India forbade the initiation of such proceedings.

3. It would be necessary to state certain admitted facts to understand and appreciated the contentions put forward on either side. A committee known as the Indian States Finances Enquiry Committee was appointed by the Union Government to examine and report among other matters -

(a) on the desirability of integrating Federal finance in Indian States and Union of States with that of the rest of India for the purpose of establishing a uniform system of Federal finance throughout what then was the Dominion of India; and

(b) as regards the legislative ground work and the administrative organisation necessary for the imposition, assessment and collection of Federal taxes.

4. The said Committee made its report of the Government of India on 27th July, 1949, in which it recommended among other matters that when the Federal Financial Integration came into effect, the items of Central Revenues specified on page 13 of the Part I of the Report should be taken over from the States by the Central Government - Item 2 in that list being Income Tax. On the date of this report, Income Tax in Mysore was being levied and collected under the then existing State law, viz., the Mysore Income Tax Act, 1923.

5. The President of India after the commencement of the Constitution, that is to say, on 28th February, 1950, entered into an agreement with the Rajpramukh of Mysore under articles 278 291 295 and 306 of the Constitution of India, by which, subject to certain modifications, they accepted the recommendations of the Indian States Finances Enquiry Committee (which will hereafter be referred to as the Committee) contained in Part I of its report read with Chapters I, II and III of Part II of its report in so far as they applied to Mysore, together with the recommendations contained in Chapter IV of part II thereof. In the annexure to Part I of their report, the Committee made the following recommendation :

"III. TECHNICAL MATTERS RELATING TO Income Tax.

9. Matters affecting most 'federal' subjects, including taxes on income. - Our suggestions concerning certain legal and other matters of general importance, affecting most federal subjects (including taxes on income), which will arise connection with federal financial integration in all States, have been set out in paragraph II of Chapter II in Part II of our Report. Those relating to legal matters are, however, reproduced below for convenient reference :-

'(5) Apart from the constitutional requirements in connection with the integration of federal finances in States - vide paragraphs 37 and 40 of the Part I of our Report - certain important issues of a legal nature will arise in connection with the actual taking over of "federal" subjects in