- (1.) THIS is a reference made by the Income-tax Appellate Tribunal by their order dated 8-5-1952, referring the following two questions for the opinion of this Court: 1. Whether, on the facts above stated, the assessee's proportionate (on time basis) income, profits and gains for 12 months out of the period 11-10-1942 to 29-10-1943 -was correctly assessed for the assessment year 1944-45?
(2.) WHETHER the receipt of the profits of prior speculation transactions under the cheque dated 29-10-1942, received by the assessee on 2-11-1942, or of any portion thereof, fell to be considered in the assessment for the year 1944-45? 2. The case was previously stated by the Allahabad Bench in Civil Reference No. 11 of 1949 which, was heard by a Bench of this Court and was by an order of this Court dated 19-6-1950, sent back 'to the Delhi Tribunal for a better statement of the case.
(3.) BHOGILAL M. Shah, the assessee, was at one time a servant of the Bombay Trading Company, bombay, out as from l-10-1942, his services were dispensed with by a letter dated 20-9-1942. Bhogilal M. Shah then started an independent business of his own in partnership with his brother which was in the beginning restricted to forward delivery transactions. Two such contracts were entered into on the 27th and 29th September, 1942. No books of account were, however, started. On 11-10-1942, these two brothers started yarn business and maintained regular books of account as from 11-10-1942. Their accounts were made up for the period from 11-10-1942, to 29-10-1943, which showed a total income of Rs. 32,870-3-9. In the books of account that they had started they mentioned a profit of Rs. 11,651-13-0 as having been received on 2-11-1942. The cheque is dated 29-10-1942.;