COMMISSIONER OF INCOME TAX Vs. RAMNARAIN GULRAJ

JUDGEMENT

(1.) THIS reference is made under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), at the instance of the Revenue to answer the following question of law, namely :

(2.) THE relevant assessment year is 1979-80, Admittedly, this is a case governed by Sections 187 and 188 of the Act, as they stand after the insertion of the proviso in Sub-section (2) of Section 187 retrospectively with effect from April I, 1975, by the Taxation Laws (Amendment) Act, 1984. On the facts and in the circumstances of this case, it is clearly a case of succession governed by Section 188 of the Act, since the applicability of Section 187 is excluded by virtue of the proviso to Sub-section (2) of Section 187. THE view taken by the Tribunal that it is a case of succession governed by Section 188 requiring two separate assessments for the two periods during the assessment year is justified.