SRIRAM JHABARMUL Vs. S C DAS GUPTA

JUDGEMENT

(1.) This application concerns the assessment of excess profits tax (hereinafter referred to as the E. P. Tax) under the Excess Profits Tax Act, 1940 (Act 15 of 1840) (hereinafter referred to as the E. P. T. Act), of the firm of Sriram Jhabarmull for the chargeable accounting period, 26-3-1942 to 13-4-1943. The firm has been assessed on the footing of a Hindu undivided family, of which the Karta is Nandram Agarwalla.

(2.) The original E. P. T. Act did not contain any provision for provisional assessment. This was introduced by Ordinance No. 16 of 1943 which introduced Section 14A. As this provision is not generally found in the current text books, I set it out below :

(3.) On 10-9-1947, the E. P. T. Officer by a provisional assessment order, assessed the tax payable at Rs. 6,00,000/-, pending regular assessment. On 10-10-1947, he issued a demand notice for the same. As the assessee defaulted in payment, a requisition was made on 10-3-1948, under Section 46(2), Income Tax Act, which has been made applicable under Section 21, E. P. T. Act. The relevant part of Section 46(2), I. T. Act is as follows: