INCOME TAX OFFICER, GORAKHPUR Vs. RAM PRASAD AND OTHERS.

JUDGEMENT

(1.) These two special appeals arise out of proceedings under the Excess Profit Tax Act, 1940. There was a Hindu undivided family known as "Ramnath Ram Prasad." Ram Prasad was the karta of the Hindu undivided family. There was a disruption of the family some time by October 1, 1951. Under a scheme of voluntary disclosure, authorities were informed about a sum of Rs. 2,08,450 as income of the Hindu undivided family. Income Tax was assessed on that income. The authorities proceeded to assess excess profits tax on the same income. Three notices were issued under Sec. 13(1) of the Excess Profits Tax Act on February 14, 1957. Another notice under the same Act was issued on April 18, 1958, under Sec. 15 of the same Act, Ram Prasad and others field two writ petition challenging the validity of the various notices issued under Sec. 13(1) and 15 of the Act. The two connected special appeals by the Income Tax Officer, Gorakhpur, are directed against these orders, dated December 8, 1961.

(2.) HE relied upon Commissioner of Excess Profit Tax v/s. Jivaraj Topur and Sons. It was held by the Madras High Court in that case that there as no provision in the Excess profit Tax Act to assess a Hindu undivided family which had become defunct.

(3.) THE same view was taken by a Division Bench of the Allahabad High Court in Commissioner of Income Tax v/s. Neekelal Jainarain. It was held by this court that the business of the Hindu undivided family on which notice under Sec. 13 of the Excess Profits Tax Act had been served before the disruption on the Hindu undivided family could not be subjected to excess profits tax after the disruption of Hindu undivided family.