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Procedure to be followed by the Excess Profits Tax Officer under Section 10A regarding adjustments to counteract avoidance or reduction of excess profits tax liability. Analysis: The judgment in question pertains to the procedure to be followed by the Excess Profits Tax Officer when exercising the power conferred upon them under Section 10A of the Act. In this case, the assessee was involved in multiple businesses, including a limited company and a partnership firm. The Excess Profits Tax Officer found that these structures were set up to avoid or reduce excess profits tax liability. The officer made two separate orders, one regarding the limited company and the other concerning the partnership firm. The assessee contended that the officer should have issued only one order covering both concerns, arguing that the two orders exceeded the officer's jurisdiction. However, the court held that the officer has the discretion to make adjustments as deemed appropriate to counteract tax avoidance, as outlined in Section 10A. The court emphasized that the legislation does not specify a particular procedure for the officer to follow as long as the power is not exceeded. The officer's authority to make adjustments continues until the assessment order is finalized under Section 14, regardless of whether the situation involves one or multiple transactions. The court rejected the argument that only one order should be issued for a single transaction, stating that the officer's power is not limited in such a manner. The judgment clarifies that the officer has the unrestricted authority to make adjustments for one or more transactions until the assessment order is issued. In conclusion, the court answered the referred questions by stating that there is no obligation for the Excess Profits Tax Officer to pass only one order for adjustments under Section 10A, rejecting the contention that the officer's power is restricted to one order per transaction. The judgment underscores the officer's discretion in making adjustments to counteract tax avoidance and highlights that the legislation does not prescribe a specific procedure for the exercise of such power. The court emphasized that the officer's authority continues until the assessment order is finalized, allowing for adjustments as deemed necessary to uphold the provisions of Section 10A and fulfill the legislative mandate.
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