BAXIRAM RODMAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference under s. 66(1) of the Indian IT Act, 1922, arises out of the consolidated order of the Tribunal, Bombay, in Income -tax Appeals Nos. 7208, 7209, and 7210 of 1950 -51.

(2.) THE assessee, Baxiram Rodmal, is a HUF with its head office in Akola and a branch office in Adilabad in the Hyderabad State. In making assessments for the asst. yrs. 1945 -46, 1948 -49 and 1949 -50, the ITO included respectively Rs. 76,886, Rs. 1,77,715 and Rs. 1,83,780 as profits of Adilabad branch remitted to British India. The sum of Rs. 76,886 added to the assessee's income for the asst. yr. 1945 -46 included Rs. 9,989 which was the profit for the asst. yr. 1945 -46 itself. Similarly, Rs. 1,77,715 taken in the assessment for the asst. yr. 1948 -49 included Rs. 76,906 which was the profit for that assessment year. The amount of Rs. 1,83,780 which was included in the assessment for the asst. yr. 1949 -50 represented the assessee's profit earned in Adilabad in that very year. The Tribunal directed the ITO to delete the amount of Rs. 9,989 from the asst. yr. 1945 -46 and to include it in the assessment for the year following the year of remittance. Similarly it directed the exclusion of Rs. 76,806 from the assessment for the asst. yr. 1948 -49 and the inclusion thereof in the assessment for the asst. yr. 1949 -50.

(3.) ON the objection of the CIT to the exclusion of the abovementioned amounts from assessment for the asst. yrs. 1945 -46 and 1948 -49, the Tribunal has referred the following question of law, viz.,