GHANSHYAM DAS GANGADHAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE short point involved in this reference is "Whether on the facts and circumstances of the case the Tribunal was right in holding that the assessee ceased to carry on any business after 31st March, 1944".

(2.) THE application out of which this reference arises related to assessment of excess profits tax during the accounting year ending the 31st of July, 1944. THE Department held that the applicant's business was discontinued on the 31st of March, 1944, and did not run through the whole of the accounting year. THErefore, the minimum standard profits were computed up to the 31st of March, 1944, that is, for eight months, and this amount was deducted out of the profits of the chargeable accounting period, and on this basis excess profits were assessed. THE assesses contends that the business continued up till the end of the accounting period. THE Tribunal has come to a finding against him, and this finding is based upon certain factors mentioned in the statement of the case made by the Tribunal. THE first is that it was admitted that there was no purchase or sale after the 31st March, 1944; second, that there were no stocks left on that date ; and, third, that all the employees were discharged before the 31st March, 1944. It appears, however, that some realisations and some payments were made during the period from the 1st April, 1944, to the 31st July, 1944, and the accounts were settled during the period.

(3.) I agree.