COMMISSIONER OF INCOME TAX Vs. KAMLA OIL MILLS

JUDGEMENT

(1.) THIS is a reference under Sub-section (1) of Section 66 of the Indian Income-tax Act, 1922 (hereinafter referred to as "the Act") at the instance of the Commissioner of Income-tax, Madhya Pradesh.

(2.) THE assessee is an unregistered firm. Without being noticed under Section 22(2) of the Act, even though the. non-applicant was a regular assessee on the file of the department, the assessee filed a voluntary return for the assessment year 1955-56 showing a loss of Rs. 69,578. THE Income-tax Officer, thereafter, issued to the assessee a notice under Section 23(2) of the Act, examined its accounts a number of times and passed an order in the order sheet saying: "THE loss returned is out of time. THE same is, therefore, filed."

(3.) IN consequence, he also did not allow a set-off to the assessee against the total income of Rs. 52,830 finally determined against the assessee for the assessment year 1959-60.