ALCOCK, ASHDOWN AND COMPANY LIMITED Vs. CHIEF REVENUE AUTHORITY OF BOMBAY

JUDGEMENT

(1.) This is an appeal from an order made by the High Court of Judicature at Bombay on October 21, 1920, discharging with costs a rule nisi directed to the Chief Revenue Authority of Bombay, whereby the Authority was called upon to show cause why he should not be ordered to refer to the Court for its decision certain questions stated in Exhibit D to a petition presented to him, or in the alternative why he should not hear and determine according to law the application of the petitioners.

(2.) The following is the matter in dispute, The applicants for the rule, Alcock, Ashdown and Company, Limited, the present appellants, were called upon under the Indian Excess Profits Duty Act, 1919, to make a statement of their profits for the year 1918. Under the powers given them by the Act they elected to have the standard of their profits ascertained upon an average of the four years 1913, 1914, 1916 and 1917. They thereupon made a return of the average capital and the average profits of these four years and of their capital and profits for the year 1918, whereby they purported to show that the percentage of profit for 1918 was not in excess of the average profit on the average capital of the four standard years; and they claimed, therefore, to be exempt from excess profits duty.

(3.) The Collector of Income Tax, however, made an assessment upon them whereby he brought out their excess profits at upwards of 17 lacs of rupees, on which a 50 per cent, duty would have to be paid after some minor deduction had been made, and he required the payment of this duty by three instalments.