COIMBATORE SALEM TRANSPORTS LIMITED Vs. COMMISSIONER OF INCOME TAX

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.

(2.) 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.

(3.) THE further question is whether the assessee is entitled to the deduction of Rs. 15,550 as claimed by him in his assessment under the Super Profits Tax Act. THE learned counsel for the assessee relies on the decisions in Hanuman Motor Service v. Commissioner of Income-tax, 1967 66 ITR 88 and Commissioner of Income-tax v. Coimbatore Motor Transport Co-operative Society, 1968 70 ITR 165 as supporting the assessee's claim for deduction in relation to the said sum of Rs. 15,550. But, as the Tribunal has not gone into the merits of the assessee's claim for deduction, we consider it proper that the Tribunal considers this question in proceedings under Section 19 of the Super Profits Tax Act, 1963, read with Section 260 of the Income-tax Act, 1961. THE question referred to us is, therefore, answered technically in favour of the assessee, leaving the question of deduction for consideration by the Tribunal on merits. THEre will, however, be no order as to costs.