COMMISSIONER OF INCOME TAX Vs. HUKUMCHAND MOHANLAL

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as the Act) at the instance of the Commissioner of Income-tax. Madhya Pradesh, Nagpur and Bhandara The question which has been propounded by the Tribunal for our decision is:--

(2.) THE material facts are that one Kanhaiyalal used to carry on business as selling agent of Messrs Mohanlal Hargovinddas of Jabalpur under the name and style of "Messrs Hukumchand Mohanlal". On or about 17th February 1960 Kanhaiyalal died His widow Hira Laxmi succeeded to the business of selling agent carried on by her husband and continued it under the same name and style, namely. "Messrs Hukumchand Mohanlal". THE firm of Mohanlal Hargovinddas had recovered from Kanhaiyalal an amount of Rs. 24.341 as sales tax for transactions effected during the period from 26th January 1950 to 31st March 1951. Kanhaiyalal was allowed deduction on account of this amount of sales tax paid by him in the relevant assessment year. Subsequently, when the Assistant Commissioner of Sales Tax, Jabalpur, held in an appeal filed by Messrs Mohanlal Hargovinddas that the sales effected during the period from 26th January 1950 to 31st March 1951 were not liable to sales tax and the Government refunded to the firm of Mohanlal Hargovinddas the amount of Rs. 24,341, the firm of Mohanlal Hargovinddas in its turn paid back to the assessee-firm Messrs Hukumchand Mohanlal the sum of Rs. 24,341 by a draft. This draft was received by the assessee on 9th November 1961 that is after the death of Kanhaiyalal and in the accounting year beginning from 1st April 1961 and ending on 31st March 1962

(3.) IN answering this question, no assistance is available by the definition of the word "assessee'' given in Section 2(7) of the Act. According to that definition, "'assessee' means a person by whom income-tax or super tax or any other sum of money is payable under this Act, and includes--(a) every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or of the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person; (b) every person who is deemed to be an assessee under any provision of this Act; (c) every person who is deemed to be an assessee in default under any provision of this Act."