SHAH, J.: - (1.) THE following Judgment of the court was delivered by:
(2.) JAIPUR Udyog Ltd.--a Company--registered under the Indian Companies Act, 1913, established in 1953 a cement factory at Sawai Madhopur in the State of Rajasthan. From time to time the Company filed its returns under the Incometax Act, 1922, and after the repeal of that Act under the Act of 1961. The following chart sets out the income or loss returned by the Company for the years 1954-55 to 1964-65 and the income or loss computed for the years by the Income-tax Officer on assessment: JUDGEMENT_470_AIR(SC)_1969Html1.htm Against the orders of assessment made by the Income-tax Officer for the years 1954-55 to 1959-60 determining its net income or loss as set out in the chart the Company appealed to the Appellate Assistant Commissioner, and the appeals were pending at the dates of commencement of the petition, in the High court of Rajasthan which give rise to the proceedings in this court. Assessments for the years 1960-61, 1961-62, 1962-63, 1963-64 and 1964-65 were however then not completed. In its return of income for the assessment year 1963-64 the Company claimed to set off against the income returned Rs. 1,03,03,935.00 being the aggregate amount of loss which it claimed it had suffered in the previous years and was entitled to set off against the income of that year. The Income-tax Officer made a provisional assessment of tax under s. 141 of the Incometax Act, 1961, and against the income returned by the Company he allowed deduction of Rs. 39,89,731.00 as loss carried forward from the earlier years, and made a demand for Rs. 8,73,873.00 as tax provisionally due and Rs. 87,387.00 as penalty for default in compliance with the demand. The Company moved petition No. 51 of 1964 in the High court of Rajasthan and challenged the order claiming that the Income-tax Officer was bound to accept the return made by the Company and could not assess it to tax on income not admitted. Against the orders of assessment made by the Income-tax Officer for the years 1954-55 to 1959-60 determining its net income or loss as set out in the chart For the assessment year 1964-65 the Company returned a net income of Rs. 59,89,757.00 as profit, and claimed to set off against that amount Rs. 36,01,735.00 as loss of the previous years and paid Rs. 12,12,596.65 as tax due by it in accordance with s. 140A (1) of the Act. But the Income-tax Officer made a provisional assessment and computed the tax on the total income of Rs. 59,89,757.00 returned by the Company without allowing any deduction claimed and ordered the Company to pay an additional amount of Rs. 17,32,768.60. Against that order the Company moved petition No. 26 of 1965, for an order quashing the demand of tax and for an injunction restraining the Income-tax Officer from enforcing the demand.
(3.) FOR the assessment year 1965-66 the Income-tax Officer relying upon s. 210(3) of the Act called upon the Company to pay Rs. 29,45,365.25 as advance-tax. The Company moved petition No. 67 of 1965 in the High court of Rajasthan, for an order quashing the demand. The High court rejected the three petitions. Against the orders passed by the High court, these three appeals have been preferred by the Company.;