COMMISSIONER OF INCOME TAX Vs. PHOTO ELECTRIC INSTRUMENTS

JUDGEMENT

(1.) THIS reference is made under s. 256 (1) of the IT Act, 1961 (hereinafter referred to as `the Act') at the instance of the Revenue to answer the following two questions of law, namely :

(2.) THE relevant assessment year is 1977-78. Admittedly this is a case governed by ss. 187 and 188 of the Act as they stand after insertion of the proviso in sub-s. (2) of s. 187 retrospectively w.e.f. 1st April. 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 s. 188 of the Act, since the applicability s. 187 is excluded by virtue of the proviso to sub-s. (2) of s. 187. THE view taken by the Tribunal that it is a case of succession governed by s. 188 requiring two separate assessments for the two periods during the assessment year, is justified.