LORD KRISHNA SUGAR MILLS LTD Vs. INCOME-TAX OFFICER AMBALA

JUDGEMENT

(1.) THE petitioners in this case. The Lord Krishna Sugar Mills Ltd, move for the issue of an appropriate writ commanding respondent 1, the Income-tax Officer Ambala, to forbear from taking any steps or further steps for enforcing the Notice of Demand dated 6-10-1951 or the order contained in the letter dated 2-7-1952.

(2.) THE sole business of the petitioners is at Saharanpur but its registered office was at Lahore and upto the year 1947 it was subject to the Jurisdiction of the Income-tax Officer, Lahore. Due to disturbances before the partition of the country the registered office was shifted to Bupar.

(3.) THE accounting period of the petitioners is from the first June of one year to the 3lst May of the following year. They filed three returns for the accounting period from 1-6-1944 to 31-5-1945, from 1-3-1945 to 31-5-1946, and from the 1st June 46 to 31-5-1947. The subject-matter of the dispute in the present case is the accounting period from 1-6-1945 to 31-5-1946, the assessment year being 1948-47. In regard to this year the Income-tax Officer found certain defects in the accounts and did not accept them. The cash book and ledger for the period 6-12-1945 to 12-1-1946 and vouchers from 1-6-1945 to the January 1946 were not produced before him. The Income-tax Officer also required the production of a copy of a judgment in liquidation proceeding given by Teja Singh, J. , and also a copy of the petition for winding-up filed by Sm. Ram Murti Devi. In this return the profit shown by the petitioner was rs. 1963/-only. On 30-9-1951 when the assessment was made the Income-tax Officer found the net Income to be Rs. 7,62,363/- and imposed a tax of Rs. 3,33,533/13/ -. He acted under Section 23 (4), Income-tax Act. Notice for demand for this sum was sent on 6-10-1951 but the petitioners made an application to the Income-tax Officer under Section 27, Income-tax Act for cancellation of the assessment. On 17-11-1961 this was dismissed and an appeal was taken to the appellate Assistant Commissioner, Income-tax. He dismissed the appeal on 17-3-1952 but remarked in the course of his order that the order calling for the judgment of Teja Singh J. and a copy of the petition for winding-up was not Justified. In May 1952 an appeal was filed in the appellate income-tax Tribunal which is still pending. '