(1) In this petition two questions fall to be determined: (I) whether the Union Parliament was competent to enact Section 3 of the Indian Income-tax (Amendment) Act. 1959 (Act No. 1 of 1959) whereby Section 49EE was incorporated in the Indian Income-tax Act, 1922, prohibiting the entertainment of claims for refund of money paid or security furnished pursuant to settlements relating to assessment or re-assessment and conferring power upon the Income-tax Officer, Appellate Assistant Commissioner or the Commissioner to set off in certain cases moneys in the possession of Government against tax found due in proceedings for assessment under the provisions of Section 34 of the Indian Income-tax Act? and (ii) whether this Court is competent to issue a writ under Art. 226 of the Constitution of India compelling the Union of India to refund due in an amount of money or to return the securities collected or received pursuant to a settlement recorded under the procedure prescribed by Act 30 of 1947 which has since has since been declared ultra vires the Union Parliament?

(2) In order to appreciate the contentions advanced at the Bar, it is necessary to set out in some detail the legis