THAKURJI ENGINEERING WORKS P LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference under section 66 (2) of the Indian Income-tax Act of 1922 (hereinafter referred to as the Act) has been made by the Income-tax Appellate Tribunal, Allahabad Bench (hereinafter referred to as the Tribunal), along with a statement of the case inviting the opinion of this court on the following question of law :

(2.) THE facts stated by the Tribunal in brief are as follows :

(3.) MR.Brij Lal Gupta, who has appeared for the assessee, has strenuously contended that, having proceeded to make the assessment on the footing that it was a company for the entire period beginning from 7th of April, 1951, to the 25th of March, 1952, it was not open to the Tribunal to have held that for purposes of business deduction, for the period 7th of April, 1951, to 12th of July, 1951, it was the Hindu undivided family and not the company. Learned counsel contends that the assessing authorities including the Tribunal could not blow hot and cold in the same breath, accept the resolution of the company that the total business done up to 16th of September, 1951, would be deemed to be the business done by the applicant-company and yet refuse to recognise it as such for business deductions.