INCOME TAX OFFICER Vs. SINGAR SINGH S B AND SONS

JUDGEMENT

(1.) THIS special appeal is directed against the judgment of S. C. Manchanda-J. dated August 21, 1964, [1965] 58 I.T.R. 626.

(2.) M/s. S. B. Singar Singh and Sons (hereinafter referred to as "the assessee") were assessed to income-tax and excess profits tax for the accounting periods ending with March 31, 1945, and March 31, 1946, by means of the orders dated 26th August, 1949. The assessments were both under the Indian Income-tax Act and the Excess Profits Tax Act. In the excess profits tax appeals, the assessee took a specific ground before the Appellate Assistant Commissioner regarding adjustment of standard profits. The Appellate Assistant Commissioner dismissed the appeals by one judgment. Thereupon the assessee filed second appeals before the Income-tax Appellate Tribunal and, inter alia, took a definite plea with regard to the adjustment of standard profits. The two appeals in respect of the excess profits tax assessment and the other two in respect of income-tax relating to the periods mentioned above were heard together and disposed of by one common judgment by the Tribunal. The assessee filed review applications in respect of the excess profits tax appeals on the ground that the Tribunal had not gone inio the question of adjustment of standard profits. These applications were dismissed by the Tribunal. Thereafter, the assessee filed Writ Petition No. 2810 of 1964' in this court. The main question involved in the writ petition was whether the Tribunal had jurisdiction to rehear the matter in view of the circumstance that, even though admittedly the assessee was entitled to the decision of the question regarding adjustment of the standard profits, the same had not been gone into by the Tribunal.

(3.) ADMITTEDLY, the following specific ground of appeal was taken in the two memorandum of appeals that were filed in respect of the excess profits tax assessments, [1965] 58 I.T.R. 626, 628 :