- (1.) THIS is a reference under Section 66 (1), Income-tas Act read with Section 21 of the Excess profits Tax Act and relates to three assessment years, 1944-45, 1945-46 and 1946-47. The relevant chargeable accounting periods are from 9-11-1942 to 28-10-1943; 29-10-1943 to 16-10-1944; and 17-10-1944 to 4-11-1945.
(2.) THE questions of law referred to us for decision are as follows: "1. Whether in the circumstances stated in para 3 of the statement of the case, the Tribunal was justified in refusing to go into the question of the validity of Section 15, E. P. T. assessment proceedings and could legally deal with Section 10a, E. P. T. appeal relating to the chargeable accounting period ending 28-10-1943 independently of that consideration? 2. Whether on the facts stated in the statement of the case, the Tribunal could legally draw the inference that the main purpose with which the firm of Kunjlal Banwarilal was formed and the division of gold sovereign of the Sarrafa shop was made was the avoidance or reduction of the e. P. T. liability and was justified in holding that Section 10a, E. P. T. Act applied to such transaction? 3. Whether the formation of the firm Kunjlal Banwarilal and the division of the gold sovereign-assets of the Sarrafa shop were transactions within the meaning of Section 10a and attracted the applicability of that section? 4. Whether in the circumstances of the case, the profits earned by the partners from the sale of the gold and sovereign received at the division of the sarrafa shop could legally be included in the assessment of the applicant firm under Section 10a of the E. P. T. Act?
(3.) THE case came up before a Bench of this Court on 28-9-1950, and was referred to a larger bench on the ground that the first question was of some importance.;