MALIK ,J - (1.) This is a reference under S. 66(1), Income -tax Act read with S. 21, Excess Profits Tax Act. The question referred to us runs as follows : "Whether, in the circumstances of the case, and on a true interpretation of the various provisions of the Excess Profits Tax Act, specially 26(1), the direction of the Board, dated 7th September, 1943, under S. 26(1), in relation to the third chargeable accounting period has to be given effect to in respect of the first and second chargeable accounting periods also ? "
(2.) THE assessee had selected the year 1934 -35 with reference to which the standard profits had to be ascertained. We are concerned with three chargeable accounting periods, the first period from the 1st September 1939 to 10th November 1939, the second period from the 11th November 1939 to 30th October 1940 and the third period from 31st October 1940 to 20th October 1941.
(3.) THE Excess Profits Tax Officer issued notices with respect to the first and second chargeable accounting periods under S. 13(1), Excess Profits Tax Act, requiring the assesses to submit his returns. The assessee sent a reply that he had not made any excess profits during the first and second chargeable accounting periods. A third notice was also issued under S. 13(1) of the Act to the assesses with reference to the third chargeable accounting period. The assessee then made an application under S. 26(1), Excess Profits Tax Act to the Central Board of Revenue through the Excess Profits Tax Officer that, by reason of certain special circumstances, it was inequitable that the standard profits of the business in relation to the third chargeable accounting period should be computed in accordance with the provisions of sub -s. (1) of S. 6 and requested the Central Board of Revenue to direct the Excess Profits Tax Officer to compute the standard profits at the figure fixed by the Central Board of Revenue, which it was claimed would be greater than the amount of profits actually earned in the year 1934 -35.;