THE COMMISSIONER OF INCOME TAX Vs. P.M. RATHOD AND CO.

JUDGEMENT

(1.) THIS is a reference by the Income Tax Tribunal at Delhi under Section 66(1), Income Tax Act. The facts which have given rise to the reference may be stated as follows:

(2.) THE Income Tax Officer and the Appellate Assistant Commissioner held that the Assessee had received a sum of Rs. 4,21,955/ - in Part A and Part C States and taxed the Assessee at the higher rates prevailing in those States. The Assessee appealed to tile Tribunal and it held that the sum of Rs. 1,36,579/ -, which was received at Ratlam in cash or through post office, constituted payment received in Madhya Bharat and the balance of Rs. 2,85,376/ -alone represented receipts in Part A States. The order of the Assistant Appellate Commissioner was accordingly modified by the tribunal. Both the Commissioner and the Assessee were, not satisfied with the decision of the Tribunal and approached it for making a reference to the High Court under Section 66 of the Indian Income Tax Act. The tribunal agreed with the parties that questions of law arose from out of its appellate, order and referred the following two questions for the opinion of this Court:

(3.) BOTH the Part A and Part B States are now, included in taxable territories, but at the material time Part B States were governed by certain concessional rates. The Assessee therefore contended that the sums received at Ratlam through bank drafts or through post office for the V.P.Ps. were receiver in Part B States whereas the Income Tax Department claimed that these sums constituted payments received in Part A State and were assessable at the higher rates which applied to Part A and Part C States