9911796707
TMI Blog1967 (1) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... a Nadar & Sons v. Commissioner of Income-tax, and need not be reiterated in any detail. The petitioner was a firm carrying on business in Virudhunagar, and was assessed to Income-tax and excess profits tax for the periods commencing from September 1, 1939. In computing the profits for the period between September 1, 1939, and March 31, 1946, there was a controversy as to the precise process of computation which was the subject-matter of a reference in S. V. P. N. Sithambara Nadar & Sons v. Commissioner of Income-tax. It was there decided that the petitioner was for purposes of the Excess Profits Tax Act, 1940, entitled to carry forward a total deficiency of Rs. 48,389 as at the end of the period, January 31, 1940, to January 30, 1941. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax is also indicated by the charging provision. Standard profits are defined by section 6 which need not detain us. Section 17 gives an aggrieved person a right of appeal from an order of the Excess Profits Tax Officer, and section 19 a further appeal to the Tribunal, by adopting the procedure applicable to an appeal to the Tribunal under the provisions of the Income-tax Act. Section 21 attracts section 66 of the Income-tax Act among its other provisions. Section 66(7) is to the effect that, notwithstanding that a reference has been made under that section, income-tax should be paid in accordance with the assessment made in the case. The proviso to this sub-section reads : "Provided that, if the amount of an assessment is reduced as a res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in a reduction of the assessment. This is what is provided for by the proviso. For the first part of the proviso to apply, there must be an assessment, it should be the subject-matter of a reference, the tax payable in accordance with the assessment has been paid, the reference must have resulted in the reduction of the amount of income chargeable to tax and in consequence a refund of the overpaid amount of tax becomes due. When such a refund is made it has to be made with interest, the quantum of which is left to the discretion of the Commissioner. The refund with interest is made applicable by the proviso, unless of course the High Court, which answered the reference and to which the Commissioner of Income-tax within the prescribed peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y are the direct result of the answer in the reference, but because the principle settled in the reference is followed and adopted in respect of the remaining years. Each accounting period is taken as a unit for purposes of assessment even under the provisions of the Excess Profits Tax Act. The overall period has significance only in this that the Act itself will be applicable only to that period and not beyond. We think that the analogy of the carry-forward of unabsorbed loss and set-off thereof under section 24 will be apposite. If, for instance, on a reference relating to a particular assessment year this court in a reference settles certain principles by its answers, as a result of which in that assessment year a certain amount is deter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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