COMMISSIONER OF INCOME-TAX Vs. MOTHOORAM PREM CHAND

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Amritsar, has referred the following question of law for the opinion of this court under Section256 (1) of the I. T. Act, 1961 (hereinafter to be referred to as " the Act ") :

(2.) BRIEFLY, the relevant facts giving rise to this reference are :

(3.) ON March 27, 1967, the assessee-firm filed an application in Form No. 11a for registration for the assessment year 1967-68, relevant to the accounting period from April 1, 1966, to March 31, 1967. The ITO impounded the books of the assessee-firm for the period ending March 31, 1967, on August 28, 1969. The books had not been closed. The assessee, it is stated, made a number of applications to the ITO for returning the books and the inspection of records in order to enable it to file the return of the income. Ultimately, the assessee-firm filed the return of its income on August 26, 1971, after inspecting the record. It declared its income as Rs. 27,580. It, along with the return, filed statements of trading and profit and loss account prepared on estimated basis, and a statement showing the division of profits amongst the partners.