REPAKA SEETHARAMASWAMY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN compliance with the requisition of this court under section 66(2) of the INdian INcome-tax Act in Civil Miscellaneous Petitions Nos. 4613 and 4614 of 1954, dated August 4, 1955, the INcome-tax Appellate Tribunal, Hyderabad Bench, has stated a case regarding the assessee, a firm consisting of two partners, namely, Repaka Seetharamaswamy and Achanta Pydisetty, Pondur, as follows :

(2.) THE assessee firm was carrying on business in yarn, food-grains and manufacture and sale of groundnut oil. For the assessment year 1946-47, the assessee duly filed a return of income in September 19, 1946. THE assessee also filed a return of income for the chargeable accounting period from March 15, 1945, to March 31, 1946, in respect of the assessment under the Excess Profits Tax Act. THE Income-tax Officer who was also the Excess Profits Tax Officer, proceeded to take up both the income-tax and excess profits tax assessments together. As required by the Income-tax Officer, the firm produced accounts at various places and on various dates. But, on December 12, 1949, the date fixed by the Income-tax Officer (who is referred to as such in these proceedings in his capacity as Income-tax Officer as well as Excess Profits Tax Officer) for final hearing, no one appeared on behalf of the firm or produced accounts as required by the Income-tax Officer. Instead, the Income-tax Officer received a telegram from the assessee on that day as follows :

(3.) "The partner in his deposition states that he though that the stamping of the books with the office stamp on January 23, 1948, was an indication that the hearing was over and that he was away on pilgrimage for a long spell which prevented him from attending to the tax matters. This, I am afraid, is not sufficient ground for the nonproduction of the accounts on the due date....."