COMMISSIONER OF INCOME TAX Vs. SOUTHERN BANK LTD

JUDGEMENT

(1.) The unusual facts which have led up to the present reference are shortly as follows I The Southern Bank Ltd., a banking company, had filed three returns of its income in respect of assessment years 1961-62, 1962-63 and 1963-64, respectively, dated the 11th September, 1961, 25th September, 1962, and the 26th June, 1963. The previous years relevant to the said assessment years were the respective calendar years 1960, 1961 and 1962. Under a scheme prepared under Section 45 of the Banking Companies Act, 1949, by the Reserve Bank of India and sanctioned by the Central Government by a notification dated the 19th August, 1964, the Southern Bank Ltd, was amalgamated with the United Industrial Bank Ltd. and was required to close its books of account on the 22nd April, 1964.

(2.) The relevant provisions of the said scheme were, inter alia :

(3.) On the 30th January, 1965, the ITO disposed of the pending assessments of the Southern Bank Ltd. by making an order as follows :