JUBILEE MILLS LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is an appeal from the order of Mr. Justice Mulla discharging a rule nisi taken out by the petitioners calling upon the Commissioner of Income Tax, Bombay, to appear and show cause why he should not be ordered to refer the questions set out in Ex. F, and in para 8 of the petition, together with his opinion thereon to this Court for its decision. The petitioners are a joint stock company incorporated and registered in Bombay on June 16, 1920. They were required by the Collector of Income Tax to make a return of their income for assessment for the year 1921 -22. On October 27, 1921, the petitioners lodged accounts for the year ending June 30, 1921. Upon that the Collector issued notices of assessment for income tax and super tax for the year 1921-22, which were subsequently amended, and the amended notices were issued on January 3, 1922. The petitioners paid the income tax and the super-tax demanded in the notices on February 6, 1922. In October 1922 the petitioners alleged that they had discovered that the Income Tax Authorities had made a mistake in levying income tax and supertax on the basis of the accounts for the twelve months, ending June SO, l921. Accordingly in November 1922 they made a representation to the Senior Income-Tax Officer pointing out the mistake and claiming refund of the income tax already paid. The Senior Income Tax Officer replied by his letter of November 18, 1922, that the assessments to income tax and super tax levied against the company for 1922-23 was in order and needed no revision, and if they were dissatisfied they might appeal to the Assistant Commissioner of Income Tax, Bombay, against the same.

(2.) It will be seen that the Senior Income Tax Officer did not refer to the assessments for 1920-21 which was the assessment which the petitioners were complaining about in their letters to him.

(3.) The petitioners then applied to the Commissioner of Income Tax who gave his decision on June 19, 1923, as follows :- The petitioners attention is drawn to the fact that the assessment against the Jubilee Mills, Ltd., objected to in their petition dated March 23, 1923, was levied in the year 1921-22 under proviso to Section 19 of the Act, 1918. The notice of assessment was issued on December 8, 1921. The tax after some minor modification was paid by the Company on February 6, 1922. No appeal against the assessment was made as provided for by Section 21 (1) (2) of Act, 1918. The undersigned declines to take action under Section 51 of Act, 1918.