PADMANABHAPPA G Vs. EPTO

JUDGEMENT

(1.) THESE are connected petitions. They are filed by the two partners of a dissolved firm. The firm in question was assessed to excess profits tax in a sum of Rs. 74,612-11-0 and a compulsory deposit of Rs. 19,816 for the chargeable accounting period from October 30, 1943 to April 30, 1944, and a notice of demand was issued to them by the Income-tax Officer on February 1, 1948, which was served on them on or before March 10, 1948 (The exact date is not known). The assessee applied to the Income-tax Officer for extension of time for the payment of tax assessed. Time was granted till April 15, 1948. Meanwhile, they filed on appeal to the Appellate Assistant Commissioner. The Inspecting Assistant Commissioner extended time on September 3, 1948, for the payment of the tax levied till the disposal of the appeal. The appeal was disposed of in 1957. A certificate under section 46(2) of the Indian Income-tax Act, read with rule 3 of the Excess Profits Tax Rules, 1940, was issued on March 23, 1950.

(2.) IT is contended that any action under section 46(2) of the Indian Income-tax Act, 1922, read with rule 3 of the Excess Profits Tax Rules, 1940, is now barred. The question is whether this contention is correct.

(3.) THIS provision was further amended as a result of Central Act. No. 25 of 1953. The section as it stands now, in addition to other provisions, contains proviso (iii) to section 46(7), which says :