TELU RAM JAIN AND CO Vs. COMMR OF INCOME-TAX PUNJAB
LAWS(P&H)-1954-9-3
HIGH COURT OF PUNJAB AND HARYANA
Decided on September 29,1954

TELU RAM JAIN AND CO Appellant
VERSUS
COMMR OF INCOME-TAX PUNJAB Respondents

JUDGEMENT

- (1.) THIS is a reference made by the Income-tax Appellate Tribunal Delhi under Section 66 (1), income-tax Act, and is dated 18-6-1953 where the following question has been submitted to this court for decision: "whether the assesment to Excess Profits Tax in respect of the chargeable accounting period 1-4-1941 to 31-3-1942, which proceeding commenced with the issue of a notice under Section 13 of the Excess Profits Tax Act, 15 of 1940, in March 1950, was barred by time?"
(2.) THE assessee is a firm and the period in regard to which the dispute has arisen in the assessing period from 1-4-1941 to 31-3-1942. A notice under Section 13, Excess Profits Tax Act, was issued to the assessee on 8-3-1950. There had been no other assessment under this Act during any previous assessing period. It was unsuccessfully contended before the Income-tax authorities as also before the Appellate Tribunal that this Excess Profits Tax assessment was barred by time. Under Section 13, Excess Profits Tax Act, power is given to the Excess Profits Tax Officer to issue notice for assessment requiring any person whom he believed to be engaged in any business to which the Act applies to furnish within a period specified a return in the specified form with respect to any chargeable accounting period specified in the notice setting forth the profits of the business as computed in accordance with the provisions of the Act. This section reads as follows: "13 (1) The Excess Profits Tax Officer may, for the purposes of this Act, require any person whom he believes to be engaged in any business to which this Act applies, or to have been so engaged during any chargeable accounting period, or to be otherwise liable to pay Excess Profits tax, to furnish within such period, not being less than sixty days from the date of the service of the notice, as may be specified in the notice, a return in the prescribed form and verified in the prescribed manner setting forth along with such other particulars as may be provided "for in the notice with respect to any chargeable accounting period specified in the notice the profits of the business and the standard profits of the business as computed in accordance with the provisions of Section 6 or the amount of deficiency available for relief under Section 7: provided that the Excess Profits Tax Officer may, in his discretion, extend the date for the delivery of the return. (2) The Excess Profits Tax Officer may serve on any person, upon whom a notice has been served under Sub-section (1), a notice requiring him on a date to be therein specified to produce, or cause to be produced, such accounts or documents as the Excess Profits tax Officer may require and may from time to time serve further notices in like manner requiring the production of such further accounts or documents or other evidence as he may require: provided that the Excess Profits Tax Officer shall not require the production of any accounts relating to a period prior to the 'previous year' as determined under Section 2, of the Indian income-tax Act, 1922, for the purpose of the income-tax assessment for the year ending on the 31st day of March, 1937. "
(3.) IN Section 15 of this Act provision is made in regard to profits escaping assessment. That section as it stood before the amendment by Section 16 of Act 22 of 1947 read as under: "15. If, in consequence of definite information which has come into his possession the Excess profits Tax Officer discovers that profits of any chargeable accounting period chargeable to excess profits tax have escaped assessment, or have been under assessed, or have been the subject of excessive relief, he may at any time within five years of the end of the chargeable accounting period in question serve on the person liable to such tax a notice containing all or any of the requirements which may be included in a notice under Section 13, and may proceed to assess or re-assess the amount of such profits liable to excess profits tax and the provisions of this Act shall, so far as may be, apply as if the notice were a notice issued under that section". (3a) Section 16 of the Amending Act (20 of 1947), was as follows: "16. In Section 15 of the Excess Profits Tax Act, the words 'within five years of the end of the chargeable accounting period in question' shall be omitted, and shall be deemed always to have been omitted. " Thus the words "within five years of the end of the chargeable accounting period in question" were removed and it was also provided that these words should be deemed always to have been omitted and thus on the date when notice under Section 13 was given the period which had originally been prescribed had been repealed and thus there was no period prescribed for purposes of Section 15.;


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