KANPUR TANNERY LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee company was dealing in the manufacture of leather goods during the accounting period, from 1-7-1945 to 30-8-1946 relevant to the assessment year 1947-48. In the year 1940, the War Risks (Goods) Insurance Ordinance had been promulgated under which the assessee company was required to insure its stock-in-trade. THE company insured its goods for certain amounts in the years preceding the account year in question but, during the account year in question mentioned above, it appears that the Government detected that the assessee had failed to pay the proper insurance premium for the earlier years and not properly insured its goods.

(2.) THE first of the two questions referred to us by the Tribunal is in a very general form and seeks the opinion of this Court on a point which does not in the form arise in this case. This Court, in answering a question in an income-tax reference, confines itself only to those questions of law which arise in a particular case and does not go out of the way to lay down general principles of law for the guidance of the Income-tax Authorities.

(3.) THE result of the introduction of Section 7-A by the amending Ordinance was that, if any person evaded payment of the premium either by not insuring the goods under the Ordinance of 1940 at all or not insuring goods to the full amount of their value, two different proceedings could be taken against him.