LAWS(PVC)-1933-1-162

COMMISSIONER OF INCOME TAX, BIHAR & ORISSA; KAMESHWAR SINGH Vs. KAMESHWAR SINGH; COMMISSIONER OF INCOME TAX, BIHAR AND ORISSA

Decided On January 24, 1933
COMMISSIONER OF INCOME TAX, BIHAR AND ORISSA; KAMESHWAR SINGH Appellant
V/S
KAMESHWAR SINGH; COMMISSIONER OF INCOME TAX, BIHAR AND ORISSA Respondents

JUDGEMENT

(1.) Their Lordships have to dispose of two consolidated appeals from a judgment of the High Court of Judicature at Patna, dated November 25, 1929, dealing with certain questions referred to the Court by the Commissioner of Income-tax, Bihar and Orissa, under Section 66 of the Indian Income-tax Act, 1922. The questions all relate to the assessment for tax purposes of the income for the year 1926-27 of the Maharajadhiraj of Darbhanga, who died on July 3, 1929, and is now represented in these proceedings by his eldest son. As regards two of the questions, the Commissioner of Income-tax is appellant ; as regards the rest the assessee is appellant.

(2.) By Section 3 of the Act of 1922, income tax is chargeable in India "in respect of all income, profits and gains of the previous year." The assessee's practice was to make up his accounts for the Fasli year which ends on September 30, and consequently, under Section 2 (11)(a) of the Act, the "previous year" in the present case is the Fasli year 1332, which ended on September 30, 1925. The taxable income of the assessee for the year 1926-27 thus consists of his income, profits and gains for the year ending September 30, 1925, as computed in accordance with the provisions of the Act.

(3.) The Assistant Commissioner of Income-tax, acting as Income-tax officer, having made an assessment of the assessee's taxable income for the year in question, the assessee appealed to the Commissioner of Income-tax, Bihar and Orissa, acting as Assistant Commissioner, who made an order reducing the assessment in respect of three particular items but otherwise affirming it. The assessee then required the Commissioner under Section 66 (2) to refer to the High Court certain questions, purporting to be questions of law arising out of his order. The Commissioner, as required by the Act, drew up a statement of the case and referred it with his own opinion thereon to the High Court. It is against the answers rendered by the High Court to certain of the questions formulated in the case so stated that the present appeals have been taken.