SATISH CHANDRA, J. - (1.) S . B. Singar Singh & Sons (hereinafter called the assessee) were assessed to excess profits tax for the chargeable accounting periods, ending 31st March, 1945 and 31st March, 1946, under two assessment orders dt. 26th Aug., 1949. The previous year 1936-37 was chosen by the assessee as his standard period. The profits of that year were Rs. 38,703/-. After deducting the profits of the standard year, the Excess Profits Tax Officer assessed the tax on the remaining amounts of profits. The excess profits tax thus assessee for the accounting years was to the tune of Rs. 1,06,181-05 and Rs. 48,978-00, respectively. In his orders, the assessing officer said that for reasons detailed in the earlier assessment orders no adjustments are made for capital variations in the standard period and the chargeable accounting period'. These reasons as given in the earlier assessment order dt. 30th Oct., 1947 pertaining to the chargeable accounting period ending 31st March, 1944 were; " As complete and regular accounts are not maintained by the assessee, it is not possible to make any adjustment for variations in average capital which cannot be accurately ascertained."
(2.) AGAINST the orders of assessment, the assessee preferred two appeal on 24th Sept., 1949 to the AAC. By two separate applications dt. 24th Oct., 1949 the assessee took an additional ground of appeal, which obviously he had not taken in the original memorandum of appeal, that the Excess Profits Tax Officer had erred in not allowing adjustments on a account of the increase and decrease of capital in the relevant chargeable accounting periods. The assessee added that he was always prepared to file his computation of average capital. Dismissing the appeals by his orders, dt. 24th Nov., 1949 the AAC negatived the assessee's contention in these terms;-- "As to these years to regular accounts have been maintained it is not possible to make any adjustment for variations in average capital which cannot be exactly ascertained. No figures have been shown to me, nor has any exact working been furnished at this state. The accounts are left in the same manner as for the earlier years. Profits in the major accounts had to be worked out by the application of a rate to the turned over. I am thus, unable to allow this contention." Aggrieved the assessee carried appeals to the Tribunal. In the memorandum of appeals, one of the specific grounds taken was that the Excess Profits tax Officer and the AAC had erred in not allowing to the assessee proper standard profits in accordance with the standard period subject to the adjustment on account of the increase and decrease of capital in the relevant chargeable accounting period. It was reiterated that the appellant was always prepared, to file its computation of average capital.'
(3.) THIS ground relating to standard profits was not discussed by the Tribunal and no finding was recorded thereon. The excess profits tax appeals and other income-tax appeals filed by the assessee were heard together Tribunal and disposed of by common orders, dt. 24th Feb., 1951. In the income-tax appeals, some relief was granted, but in the excess profits tax appeals, no relief was granted due to the variation of the capital in the chargeable accounting periods of 1945-46 and 1946-47.;