MYSORE BANGLE WORKS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE are references under section 256(1) of the Income-tax Act, 1961 (the "Act"). The questions referred are common and they relate to the validity of reopening the assessments in regard to the income of the assessee-firm falling under section 40(b) of the Act. It may be sufficient if we may refer to the questions referred in I.T.R.C. No. 175 of 1978. They are :

(2.) THE assessee was a registered firm and was assessed as such for the assessment years 1962-63, 1963-64, 1966-67, 1967-68, 1968-69 and 1969-70. One Tribhuvandas was one of the partners of this firm in all the previous years relevant to the said assessment years. In the intervening two years relevant to the assessment years 1964-65 and 1965-66, the business was carried on by Tribhuvandas as sole proprietor, with which we are not concerned in these matters.

(3.) IN the actual conduct of the business, the assessee issued sale bills in respect of its products in the name of Bitco Sales Service allowing 10 per cent. commission, but in the trading accounts, the assessee credited only the net amount of the sale proceeds.