JAMNADAS BRIJ MOHAN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE are two references under sections 66(1) and 66(4) of the Income-tax Act (hereinafter referred to as the Act).

(2.) THE question of law which has been referred for the opinion of this court is :

(3.) THE Appellate Assistant Commissioner confirmed the assessments. On further appeal to the Income-tax Appellate Tribunal (hereinafter referred to as the Tribunal) it was contended that there was no business connection in British India and, therefore, the provisions of section 42(1) and 42(3) were not applicable. THE Tribunal rejected the contention but held that the reasonable rate to be applied should be 5 per cent. instead of 7 1/2 per cent. gross profit applied by the Income-tax Officer. An application was thereupon made for a reference to this court which was acceded to and the question stated hereinabove has been referred for the opinion of this court.