PUNJAB DISTILLING INDUSTRIES LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference made by the Income-tax Appellate Tribunal of Delhi by their order dated 20-11-1952 stating a case under Section 66 (2), Indian Income-tax Act.

(2.) THE matter arises out of Income-tax appeals which were directed against the assessments for the years 1947-48 and 1948-49 in respect of the profits and gains of the assessee in the previous years ending with November 1946 and November 1947. Besides this there were Excess Profits Tax appeals against an assessment made in respect of the chargeable accounting period 1-12-1945 to 31-3-1946, and there were two Business Profit Tax appeals against the assessments made in respect of the chargeable accounting periods 1-4-1946 to 30-11-1946 and 1-12-1946 to 30-11-1947. Thus there were five appeals but the point involved in all of them was the same.

(3.) THE new company continued to take similar security deposits, THE company managed to get some official recognition to their practice of demanding security. In March 1944, the Financial Commissioner issued the following circular: