COMMISSIONER OF INCOME TAX Vs. R SHANTILAL AND CO
HIGH COURT OF CALCUTTA
COMMISSIONER OF INCOME-TAX
R.SHANTILAL AND CO.
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K.L.Roy, J. -
(1.) This is a reference under Section 66(1) of the Income-tax Act, 1922, at the instance of the Commissioner of Income-tax II, Calcutta. The assessment year concerned in this reference is 1956-57, the relevant previous year being 2011 Guzrati Dewali Sambat year corresponding to the period from 26th October, 1954, to 17th June, 1955. The assessee is Messrs. R. Shantilal and Company which was assessed in the status of an unregistered firm for the relevant assessment year, and which sold and transferred its business as a going concern to a private limited company styled as Messrs. R. Shantilal & Company Private Ltd. shortly before the close of the aforesaid accounting year and the assessee-firm was dissolved on the last date of the accounting year, viz., the 17th June, 1955. In its book of account for the current year which were maintained on the mercantile system of accounting the assessee made the following provisions for its liability under the Sales Tax Act:
(2.) Out of the claim for deduction of the aforesaid sum the Income-tax Officer only allowed Rs. 253 for 2008 Sambat year and Rs. 1,250 for Sambat year 2009 actually paid during the accounting year and disallowed the claim for the balance and added back the sum of Rs. 46,001 to the assessee's tatal income.
(3.) On further appeal, the Appellate Assistant Commissioner allowed a further sum of Rs. 20,233-4-9 being the sales, tax paid in the year of account and reduced the amount of disallowance to Rs. 27,271-4-9.;
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