R. S. A. C. KASI IYER vs THE COMMISSIONER OF INCOME-TAX, MYSORE, TRAVANCORE-COCH

The Supreme Court held that the Government of India had the authority under Section 3(c) of the Opium and Revenue Laws (Extension of Application) Act, 1950, to direct assessment or reassessment proceedings under the Travancore Income-tax Regulation following the report of the Travancore Investigation Commission. The Court clarified that the liability to pay income-tax arises only upon an effective order of assessment, which was not issued in this case, thus affirming the Government's competency to direct such proceedings. The High Court's validation of the orders was upheld, confirming the legality of the actions taken by the Government of India and the Income-tax Officer.