The Judgment of the Court was delivered by SARKAR J. This is an appeal brought by special leave against the judgment of the High Court at Nagpur, delivered on a reference under s. 66 1 of the Income tax Act.
K. Daphtary, Solicitor General of India, K. K. Rajagopala Sastri, R. H. Dhebar and D. Gupta, for the appellant.
Appeal by special leave from the judgment and decree dated December 8, 1953, of the former Nagpur High Court in Misc.
Though there were two separate assessment orders in respect of these years, ultimately when they came up before the Appellate Tribunal they were companysolidated into one appeal.
The Appellate Tribunal agreed with the companyten tion of the assessees that they were number liable to be taxed on the profits because these did number form their income.
The appeal is by the Commissioner of Income tax, Madhya Pradesh and Bhopal.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
55 of 1950.
Civil Case No.
The assessees then appealed to the Appellate Tribunal.
The Tribunal held that the assessees had objected to the assessment before the Income tax Officer on two grounds, namely, that the income was Dot the income of the assessees and that the income was exempt from taxation under s. 4 3 i a , as appeared from their letter dated January 22, 1947.
222 of 1956.
The assessees went up in appeal to the Appellate Assistant Commissioner, before whom the same contention appears to have been repeated.
