MALICK B Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a case stated under section 66 (1) of the Indian Income-tax Act, 1922, hereinafter referred to as the Act. The question referred is :

(2.) THE material facts lie within a narrow compass. THEre was a dispute, between Messrs. United Timber Trading Co., Calcutta, and the Union of India, which was referred to the arbitration of two persons. THE nominee of the Government was Sri. Charan Singh, Special Solicitor to the Government Department of Industries and Supply, while the arbitrator nominated by Messrs. United Timber Trading Co. Ltd. was the late Sri Sarat Chandra Bose, a leading advocate and at that time a member of the Executive Council Government of India. THE aforesaid arbitrators, at a meeting held on the 1st April, 1947, decided to request the assessee to act as an umpire in the event of there being a difference of opinion between them. THE offer was conveyed in a letter dated the 3/5th of April, 1947, and was signed by Sri. Shiv Charan Singh for self and on behalf of Sarat Chandra Bose coarbitrator. THE letter concluded :

(3.) THERE was neither mention of any payment nor was there any question at that time of any payment of fee for acting as an umpire. THEREafter, the assessee became the Chief Justice in 1947, and considered that it was not proper or permissible for him to act as an umpire. As he had not heard anything for nearly three years from the arbitrators, he considered that the matter was closed. In 1949, however, he heard from the late Sri Sarat Chandra Bose, that there had been a difference of opinion between the arbitrators and the matter was going to be referred to him for its being decided in accordance with the previous decision taken. The assessee wrote to Sri Sarat Chandra Bose that it would not be right for him to act as an umpire, and, therefore, he declined to do so. The assessee by him letter dated the 9th July, 1949, also wrote to the said Sri Shiv Chandra Singh expressing his inability to act as an umpire and added that he would like to be excused. He also stated that he was returning the records of the case.