- (1.) In Civil Appeals Nos. 1453 and 1454 of 1980. These appeals are preferred against the judgment of the Patna High Court dismissing the writ petitions filed by the two assessees herein, Chhathu Ram and Darshan Ram. The assessment year concerned is 1942-43. Both of them were assessed in the status of individuals under S. 23(3) of the Income-tax Act, 1922 by an order dated March 14, 1945. Chhathu Ram was assessed on a total income of Rs.4,54,431/- which included a sum of Rs. 1,92,000/- being the cash credit in her personal account in the Books of M/s. Chhathu Ram Horilram Ltd. Darshan Ram was assessed on a total income of Rupees 4,12,576/- which included a sum of Rs. 1,52,000/- being the cash credit in his personal account in the Books of the aforesaid company. On the basis of the said income, an assessment was made on them under the provisions of the Excess Profits Tax Act. The Excess Profits Tax payable was determined at Rs. 97,000/- and Rs. 53,620/respectively. As provided by S. 12(l) of the Excess Profits Tax Act, the tax payable thereunder was deducted in computing the total income assessable under the Income-tax Act. Both the assessees filed appeals. The Appellate Assistant Commissioner confirmed the assessments except with respect to the aforesaid additions on account of cash credits. He remanded the matter to the Income-tax Officer for further consideration. After the remand the Income-tax Officer passed fresh orders, again including the said amounts in the income of the respective assessees. Appeals were again preferred to the A.A.C.
(2.) While the appeals aforesaid were pending before the A.A.C., notices were served upon the assessees u/ S. 34(lA) of the 1922 Act for the assessment years 1940-41 to 1947-48. (Sub-secs. (IA) to (ID) were introduced in the year 1954). After receiving the said notices, both the assessees applied to the Central Board of Revenue for settlement under sub-sec. (1B) of S. 34. On the basis of said applications, orders were passed on August 20, 1960 accepting the settlement offered.
(3.) The appeals filed by the assessees (against the orders of the Income Tax Officer adding the aforementioned cash credits in their income) were dismissed by the Appellate Assistant Commissioner. (It is not necessary to notice the reasons for his orders for the purpose of these appeals).;