These are three appeals from three judgments of the High Court of Judicature at Patna. The appellants are all residents of Jhumritalaiya, a place in the district of Hazaribagh in Chotanagpur Division of Bihar. By an Order in Council, dated 3rd March, 1936, Chotanagpur and Santal Parganas were declared to be “partially excluded areas”. The questions involved in these appeals are with regard to the assessment of the appellants to income-tax for the year 1940-41. Except for minor differences in the dates, the points of law raised in the appeals and the facts are identical. Under the circumstances one judgment can conveniently dispose of the three appeals.

The assessees have been assessed for the year 1940-41. Their accounting year was 1939-40. On or about the 20th April, 1940, a notice under section 22 (2) of the Income-tax Act was served upon the assessees requiring them to furnish a return in the prescribed form. On the 22nd April, 1940, a notice under section 22 (1) of the Income-tax Act was published in the newspapers requiring persons generally to submit the returns in the prescribed form. The Indian Finance Act of 1940 had not been extended by any Notification up to that time to this partially excluded area. On the 26th May, 1940, the Governor of Bihar issued a Notification under section 92(1) of the Government of India Act, 1935, in the following terms:

“In exercise of the power conferred by sub-section (1) of section 92 of the Government of India Act, 1935, the Governor of Bihar is pleased to direct that each of the Acts specified in the Schedule shall be deemed to have been applied to the Santal Parganas and the Chotanagpur Division with effect retrospectively from the date on which each of the said Acts came into force in other parts of the Province of Bihar.

SCHEDULE.

(1) The Indian Income-tax (Amendment) Act, 1939 (VII of 1939).

(2) The Income-tax Law Amendment Act, 1940 (XII of 1940).

(3) The Excess Profits Tax Act, 1940 (XV of 1940).

(4) The Indian Finance Act, 1940 (XVI of 1940).”

To remove doubts as to the retrospective applicability of the Indian Finance Act, 1940 and the other Acts mentioned in the Notification, acting under section 92 (2) of the Government of India Act, 1935, the Governor of Bihar made Regulation I of 1941, for the peace and good government of the area in question. It received the assent of the Governor-General on the 13th of June, 1941 and was published in the Bihar Official Gazette on the 17th of June, 1941. The Regulation was in the following terms:

"BIHAR REGULATION I OF 1941.

The Chotanagpur Division and the Santal Parganas District Validating Regulation, 1941.

A

Regulation.

To remove doubts as to the Operation of certain Acts of the Central Legislature in the Partially excluded areas of the Province of Bihar.

Whereas it is expedient to remove doubts as to the operation of certain Acts of the central Legislature in the partially excluded areas of the Province of Bihar.

It is hereby enacted as follows:-

Short title, extent and commencement. 1. (1) This Regulation may be called The Chotanagpur Division and the Santal Parganas Validating Regulation, 1941.

(2) It extends to the Chotanagpur Division and the Santal Parganas District.

(3) It shall come into force at once.

Operation of Act VII of 1939. 2. (1) Section 1 and Part I of the Indian Income-tax (Amendment) Act, 1939, shall be deemed to have come into force in the area to which the Regulation extends on the 1st day of April, 1939:

Provided that sub-clauses (iii) and (iv) of clause (i) of section II shall not be deemed to have taken effect earlier than the 1st day of April, 1940.

(2) Part II of the Indian Income-tax (Amendment) Act, 1939, shall be deemed to have come into force in the said area on the date appointed by the Central Government for its coming into force throughout British India generally.

3. The Income-tax Law Amendment Act, 1940, the Excess Profits Tax Act, 1940, and the Indian Finance Act, 1940, shall be deemed to have come into force