KRISHAN CHAND GIRDHARI LAL AND CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS writ petition is filed by the petitioner firm praying for a writ of certiorari for the quashing of the order passed by CIT, Amritsar 1, on January 31, 1976, and for a writ of mandamus against respondent No. 2 praying for determination and the assessment of income tax payable by the petitioner with respect to the years 1958 59, 1959 60, 1960 61 and 1961 62 relating to the working of lease known as " Killar Forest ", Jammu and Kashmir State, in the province of Jammu or any other writ or direction as may be deemed necessary under the circumstances of the case.

(2.) IT has been stated in the petition that the petitioner is a parnership firm carrying on the business of exploiting forest produce as a Government lessee in the State of Jammu and Kashmir having its principal place of business at Jammu. It is not disputed that the petitioner firm is assessed to income tax under the jurisdiction of the ITO, " B " Ward, Jammu. In the month of December, 1956, it is stated by the petitioner that it entered into a contract with the State of Jammu and Kashmir through the Forest Department of the Government for exploiting the forest known as " Killar Forest " for a period of 10 years. The royalty payable to the Government under the terms of the lease was of the order of Rs. 1,37,00,402. Pursuant to the said contract, on completion of the formalities, the petitioner commenced its business in timber extraction and sale thereof.

(3.) THE AAC on hearing the appeal reduced the aforesaid provisional rate of 20 per cent to 12per cent. Being aggrieved against the said order of the AAC, the petitioner went in further appeal to the Tribunal. The Tribunal by its order dated September 1, 1966, with certain observations, confirmed the order passed by the AAC on August 21, 1965. For the next asst. year 1961 62, on the same pattern, it is alleged that the flat rate offered by the petitioner was 5per cent ; whereas the ITO preferred to apply the rate of 12 1/2 per cent. It is further submitted that the petitioner thereafter made an application to the ITO, when he passed the order with respect to the asst. yr. 1962 63 praying for reassessment and modification revising the earlier provisional determination of the assessable income for the asst. yrs. 1958 59, 1959 60, 1960 61 and 1961 62 to bring it in conformity with the overall rate of profit of 10.1per cent. The grievance of the petitioner started from here when respondent No. 2, ITO, rejected the aforesaid prayer of the petitioner for reassessment and modification or alteration on the technical plea that the assessments for the abovenoted years up to 1960 61 had become final and could not be revised at any point of time beyond the period of four years from the date on which the original assessments for these years were made. He also declined to assess and revise the provisional assessment for the year 1961 62, though the same was capable of revision.