( 1 ) THIS appeal is directed against, the judgment and order of A. N. Sen J. , dated July 3, 1975 (Burma Shell Oil Storage and Distributing Co. of India Ltd. v. Income-tax Officer allowing the respondent's application made under Article 226 of the Constitution challenging two notices issued in connection with initiation of penalty proceedings against the respondent. The facts of this case may be briefly stated.

( 2 ) THE respondent which is a company incorporated under the provisions of the English Companies Acts with liability of its members limited by shares and has its registered office at Burmah House, Piper Sway, Swindon in the United Kingdom, carries on business, inter alia, at Burmah Shell House, Ballard Street, Bombay-1, and also at No. 31, Binoy Badal Dinesh Bag in the town of Calcutta. The respondent's business consists in the importation and of purchase and storage, sale and distribution of petroleum and allied products. The capital of the respondent has been contributed in pounds sterling and as on December 31, 1966, the authorised capital of the respondent consisted of 25,000,000 divided into 12,500,000 'a' ordinary shares of pound one each and 12,500