K P BHARGAVA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a reference under S. 66(1), Income -tax Act read with S. 21, Excess Profits Tax Act. The question referred to us runs as follows :

(2.) THE assessee had selected the year 1934 -35 with reference to which the standard profits had to be ascertained.

(3.) THE Excess Profits Tax Officer issued notices with respect to the first and second chargeable accounting periods under S. 13(1), Excess Profits Tax Act, requiring the assesses to submit his returns. The assessee sent a reply that he had not made any excess profits during the first and second chargeable accounting periods. A third notice was also issued under S. 13(1) of the Act to the assesses with reference to the third chargeable accounting period. The assessee then made an application under S. 26(1), Excess Profits Tax Act to the Central Board of Revenue through the Excess Profits Tax Officer that, by reason of certain special circumstances, it was inequitable that the standard profits of the business in relation to the third chargeable accounting period should be computed in accordance with the provisions of sub -s. (1) of S. 6 and requested the Central Board of Revenue to direct the Excess Profits Tax Officer to compute the standard profits at the figure fixed by the Central Board of Revenue, which it was claimed would be greater than the amount of profits actually earned in the year 1934 -35.