HARIDAS PURSHOTTAM Vs. STATE

JUDGEMENT

(1.) BEFORE embarking upon circumstances of this reference, I desire to draw. attention to the fact, that as long ago as August 16, 1940, the assessee made a petition for this matter to be referred, but in fact no reference was made until April 11, 1946, that is to say for a period of 5| years. No explanation is forthcoming as to why a delay of this magnitude should have taken place. It is a very shocking thing, that an assessee, who under the Indian Income-tax Act has to pay the full amount claimed, should have his petition to refer a qiiestion to the Court delayed in this way, and we draw the attention of the authorities concerned to it in the hope that such a delay will not occur again.

(2.) THE assessment year is the year 1939-40 in respect of the accounting year which is the Samvat year 1994, that is to say, in respect of the period November 4, 1937, to October 23, 1938. Mr. Haridas Purshottam, who was the assessee, lias, during the course of the long delay, died, and his son, who is now the Jiarta of the joint family in his father's stead, has been brought on the record.

(3.) THE other agreement is the one referred to in the clause I have just read. It is also dated July 21, 1920, and can be conveniently described as the managing agency agreement, it being made between the new company and the eight partners, whereby the eight partners became managing agents of the company. In this agreement there is the following recital : Whereas in consideration of the services rendered by the said firm (that ia to say the eight partners) in promoting and establishing the company and for divers other valid considerations and reasons, it is provided by the articles of association of the company that the said firm of Messrs. Purshottam Govindji & Company and the present member or members thereof or the members or sole member (as the case may be) for the time being constituting the said firm of Messrs. Purshottam Govindji & Company and their successors in business and assigns, notwithstanding any change to the constitution or the name or style of the said firm, shall be and are hereby appointed managing agents of the company for the period, and upon thejterms, provisions and conditions as to remuneration, management and otherwise set out in the agreement draft whereof is set forth in the schedule thereto.