In the assessment year in question, the assessee companytended that there was partial partition of the family on 11th October, 1948 and various business owned by the family were divided through entries made in the account books.
Reliance was also placed on the observations of this Court in the case of Commissioner of Income Tax, Madras v. K. Srinivasan and K. Gopalan, 23 I.T.R. 87.
The High Court was of the view that the Tribunal was right having regard to the decision of the Bombay High Court in the case of Ambaram Kalidas v. Commissioner of Income Tax Bombay North, 19 I.T.R. 227.
The date marked the companymencement of the previous year relating to the assessment year 1950 51.
A partnership firm was companystituted to carry on those businesses and succeeded the family on 12th October, 1948, according to the High Court.
The profits of the broken period are exempt from tax.
It had a branch styled as M s. Jagan Prasad Shiv Prasad of Achnera.
The assessee was assessed under the Indian Income Tax Act, 1918.
The High Court was of the opinion that numbertax was chargeable for any profits that might have accrued on 12th October, 1948, the date on which the succession took place.
It was held by the Tribunal that the benefit so applied for was available to the assessee, number in the assessment year 1949 50 but in the assessment year 1950 51.
From the Judgment and Order dated 4.2.1971 of the Allahabad High Court in Income Tax Reference No.
460 of 1964.
The Income tax Officer rejected the application.
There was an appeal by the assessee.
The Tribunal had also found that an application was made within time by the assessee that the profits of the previous year should be substituted by the profits of the broken period.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
In the relevant year, the assessee was a Hindu undivided family carrying on business under the name and style M s. Badri Prasad Jagan Prasad, Agra.
The remand report submitted by the Income tax Officer set out that the partnership firm succeeded to the business of the family on the 12th October, 1948.
The appeal relates to the assessment year 1949 50, the relevant previous year being the year companymencing 24th October, 1947 and ending on 11th October, 1948.
Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the succession took place on 12th October, 1948 and companysequently the benefit of section 25 4 companyld be availed of only in the year 1950 51?
There was another question number companynected with the first two which was answered in favour of the assessee and is number the subject matter of this appeal and need number be companysidered.
The following questions of law were referred to the High Court under Section 661 of the Act Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was number entitled to the relief under section 25 4 in the year 1949 50?
C. Sharma, K.C. Dua and Miss A. Subhashini for the Respondent.
182 NT of 1974.
The High Court was of the opinion that in view of these observations, upon the finding of the Tribunal that the succession took place on 12th October, 1948, the Tribunal was right in holding that the assessee was number entitled to the benefit of Section 254 in the year 1949 50 but he companyld avail of that benefit in the year 1950 51.
The Appellate Assistant Commissioner held that as the succession took place on a day of the previous year relevant to the assessment year 1950 51, the claim companyld number be companysidered in respect of the assessment year 1949 50.
The Judgment of the Court was delivered by SABYASACHI MUKHARJI, J. This appeal by special leave arises from a judgment and order of the High Court of Allahabad in respect of a reference under Section 66 1 of the Income Tax Act, 1922 hereinafter referred to as the Act .
A. Ramachandran and A.G. Ratnaparkhi for the Appellant.
On appeal, the Appellate Assistant Commissioner set aside the order and called for a remand report from the Income tax Officer.
The assessee filed an application before the Income tax Officer claiming the benefit of Section 25 4 of the Act.
