COIMBATORE SALEM TRANSPORTS LIMITED Vs. COMMISSIONER OF INCOME TAX MADRAS

JUDGEMENT

(1.) FOR the assessment year 1963-64, the accounting period being the year ended December 31, 1962, the assessee-company was assessed by the Income-tax Officer under the Income-tax Act on a total income of Rs. 3, 28, 671 by an order dated December 30, 1963. FOR the purpose of assessment under the Super Profits Tax Act, for the same assessment year 1963-64, the chargeable profits were also taken at the same figure of Rs. 3, 28, 671. Thus, the super profits tax assessment followed the income-tax assessment In the income-tax assessment the assessee claimed deduction to the extent of Rs. 44, 237 before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner granted relief only to the extent of Rs. 6, 984. The same relief was also granted in the super profits tax assessment.

(2.) THE assessments under the Income-tax Act as well as under the Super Profits Tax Act came ultimately before the Tribunal. THE Tribunal confirmed the order of the Appellate Assistant Commissioner, rejecting the assessee's claim for deduction in relation to a sum of Rs. 15, 550 being the expenses incurred by the assessee-company in fitting diesel engines in the place of patrol engines to some of its vehicles. THE order of the Tribunal upholding the order of the Appellate Assistant Commissioner was allowed to have become final. THE assessee had also claimed the same relief by way of deduction of the said sum of Rs. 15, 550 in the super profits tax assessment. THE Tribunal, without going into the question as to whether the sum of Rs. 15, 550 could be allowed as deduction while calculating the chargeable profits in the super profits tax assessment, held that the income-tax assessment, wherein the claim for deduction was considered and rejected, having become final, the total income as determined in proceedings under the Income-tax Act would have to be taken as chargeable profits for the super profits tax assessment as well and that as the income-tax assessment for the corresponding assessment year stood concluded by the Tribunal's decision, no further deduction from the chargeable profits was permissible under the provisions of the Super Profits Tax Act, 1963. In that view, the Tribunal negatived the assessee's claim for deduction of the said sum of Rs. 15, 550 in the computation of the chargeable profits under the Super Profits Tax ActAggrieved against the decision of the Tribunal, the assessee has sought reference to this court on the following question, viz