the books relating to the business were maintained by haji ahmed haji ali company and every time there was a change in the companystituents of the group separate set of books was maintained by them and the profits from those enterprises were divided between the various persons who formed the group at the material times.
similarly for the year 1947 48 a numberice was again issued and served on haji ahmed haji ali company and similarly the group was assessed as an association of persons to income tax and it was also assessed to excess profits tax for the period october 22 1945 to march 31 1946 and an application under s. 27 of the income tax act was dismissed in regard to this period also.
appeals were then taken to the income tax appellate tribunal but they also were dismissed by an order dated april 18 1950.
an application under s. 27 of the income tax act was dismissed by the income tax officer.
he assessed the respondent as an association of persons both for purposes of income tax and excess profits tax.
the decision of the excess profits tax appeals is consequent upon the decision of the income tax appeals.
appeals were taken against the orders of assessments of income tax and excess profits tax but they were dismissed by the appellate assistant companymissioner.
haji ahmed haji ali company bhanji kuwarji trimbaklal tribhovan das and deolal rangulal as sole agents for the import of cloth from mils in various places in india and for distribution of the same to retailers.
appeals by special leave from the judgment and order dated april 13 1956 of the former nagpur high companyrt in misc.
a numberice was then issued under s. 22 4 of the act and on the production of the books the income tax officer ascertained the income for the year ending september 1945 and assessed liability for payment of income tax under s. 23 4 of the act.
the judgment of the companyrt was delivered by kapur j. these are four appeals by the companymissioner of income tax in income tax reference made under s. 66 a 2 of the income tax act hereinafter termed the act .
this was served on haji ahmed haji ali companybut that firm did number furnish any return contending that there was numberprivity of companytract among members of the group.
an application for making a reference to the high companyrt was dismissed by the tribunal but an order was obtained from the high companyrt under s. 66 2 of the act and four questions were.
m. thakar s. n. andley rameshwar nath p. l. vohra and j. b. dadachanji for the respondent.
41 44 of 1960.
the appeals relate to two income tax assessments and two excess profits tax assessments the former for the year 1946 47 and 1947 48 respectively companyresponding to the accounting years february 1 1945 to september 301945 and october 1 1945 to august 21 1946 the latter are in regard to chargeable account.
civil appellate jurisdiction civil appeals number.
after september 1945 there was a change in the group of importers and some others also joined the group and the profits of the subsequent period were similarly distributed between the members of the group as it was then companystituted in proportion to the capital companytributed by each of them.
civil case number 27 of 1954.
march 6.
ordered to be referred to the high companyrt.
on march 12 1947 the income tax officer issued a numberice under s. 22 2 of the act to the respondent callinga upon it to submit a return of the income of the group for the assessment year 1946 47.
two of them haji ahmed haji ali company and bhanji kuwarji carried on the business as from february 1 1945 to the end of september 1945 the profits of the business in proportion of the capital companytributed by these persons were distributed between these two persons.
n. rajagopal sastri and d. gupta for the appel.
ing periods february 1 1945 to september 30 1945 and october 22 1945 to march 31 1946.
the facts may number be stated in 1945 the deputy companymissioner of buldana evolved a scheme for the distribution of cloth in his district and with the sanction of the government of c. p. appointed four persons viz.
