MALIK, J. - (1.) THESE two references are under S. 66 (2), Income -tax Act, in the matter of the income -tax assessment of Messrs. Jagannath Bamdayal of Kanpur.
(2.) THE same question hag been referred to us for opinion in both these cases. The question referred is as follows: "Whether, in all the circumstances of the case, the sum of Rs. 92,188 being the balance of Rs. 1,56,657 less Rs. 64,469 already taxed, or any part thereof may be deemed in law to be the income, profits or gains of the 'previous year" which can be assessed to incometax in the assessment year 1938 -1939?" The aesessee is a Hindu undivided family. The assessment year in question is 1938 -1939 and the account year began on 28th September 1936 and ended on some date in September 1937. The asseseee carries on business in Kanpur.
(3.) THIS Hindu undivided family was a part ­ner in the Upper Indian Ghorwari Collieries at Hirdaigarh in the Central Provinces (hereinafter referred to as "the Collieries"). The share of the family was six annas. The collieriea was assessed to income -tax in the Central Provinces and the assessment used to be made by the Income -tax Officer of Chhindwara. Each year the Income -tax Officer of Chhindwara used to report the amount of the profits corresponding to assessee's six annas share and the Income -tax Officer at Kanpur used to add the amount so reported to the taxable income of the Hindu undivided family.;