SETH NATHURAM MUNNALAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON the dismissal of his applications by the Appellate Tribunal under s. 66(1) of the IT Act, the assessee made two applications under s. 66(2) of the Act, one in respect of the asst. yr. 1945 - 46 and the other in respect of the asst. yr. 1946 -47. They are Miscellaneous Civil Cases Nos. 201 and 202 of 1949. By an order dt. the 7th April, 1952, this Court required the Appellate Tribunal to state the case on the questions of law indicated in the order. Accordingly the Tribunal has stated the case and referred the said questions of law. They are:

(2.) THE assessee, an HUF, carrying on business in cloth and yarn, has two shops at Sagar, one at Bada Bazar and the other at Katra locality. According to the ITO, the method of accounting employed by the assessee is such that, in his opinion, income, profits and gains cannot be properly deduced therefrom. This finding was not disputed. Proviso to s. 13 is therefore, applicable. In fact, the profits for the asst. yrs. 1941 -42 and onwards were determined under this proviso as stated in the statement of the case.

(3.) AFTER reproducing certain extracts from the assessment orders for the years 1941 -42 to 1945 - 46, the statement of the case proceeds :