BRIJ BEHARI PRASAD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a case stated under section 66(1) of the Income-tax Act (hereinafter referred to as the Act) by the Income-tax Appellate Tribunal. The two questions referred are :

(2.) THE material facts as culled from the statement of the case are these : THE relevant assessment year is 1948-49. THE previous year of the assessee was the financial year under the Rampur Income-tax Act which was from the 31st May, 1947, to the 30th April, 1948. THE assessee is an individual and was a resident of the Rampur State. THE assessee was being assessed to income-tax on the basis of his income for the year ending 30th April, each year. His assessment up to and including the assessment year 1947-48, the previous year ending 30th April, 1947, had been completed under the Rampur Income-tax Act. No assessment had been made under the Rampur State Income-tax Act for the relevant assessment year 1948-49. Rampur State merged with the Indian dominion on the 15th May, 1949. On the 1st August, 1949, it became a Chief Commissioners province and finally on the 1st December, 1949, it became a Chief Commissioners province and finally on the 1st December, 1949, it merged with the United Provinces. As a consequence of the merger, the Central Taxation Laws were made operative in this State by the Taxation Laws (Extension to Merged States and Amendment) Act, 1949, hereinafter referred to as the Taxation Laws Act, 1949.

(3.) THE Merged States (Taxation Concessions) Order, 1949, hereinafter referred to as the Concessions Order, was made in exercise of the powers conferred by section 60A of the Indian Income-tax Act whereby certain exemptions and reductions in the rate of tax and modifications were specified. Section 5(1) reads :