- (1.) These appeals are by certificate against the judgment dated 16 August, 1965 of the High Court of Madras on a reference under S. 66 (1) of the Indian Income-tax Act, 19222 (hereinafter referred to as the Act).
(2.) Seven questions were referred to the High Court. The reference involved first the construction of the second proviso to sub-section (3) of section 34 of the Act, and, secondly, the applicability of section 24B (3) of the Act to the assessments made on the executor to the estate of late Rangalal Jajodia.
(3.) In order to appreciate the scope of the reference, it is necessary to refer to the facts which Rave rise to the questions. Rangalal Jajodia (hereinafter referred to as the deceased) filed income-tax returns for the years 1942-43 and 1943-44 as well as his excess profits tax returns for the corresponding chargeable accounting periods ending 31 December, 1941 and 31 December, 1942 before the Income-tax Officer, Excess Profits Tax Officer, Madras, Special South Circle. On receipt of the returns the officer issued the requisite statutory notices to the assessee for production of accounts and also other evidence in support of the returns under Sections 22 (4) and 23 (2) of the Act and under the corresponding provisions of section 30 of the Excess Profits Tax Act, 1940. Rangalal Jajodia complied with the aforesaid notice. But before the assessments to the income-tax and excess profits tax could be made Rangalal Jajodia died on 11 January, 1946.;