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TMI Blog1971 (2) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... The judgment of the court was delivered by PATHAK J.- Three questions have been referred by the Income-tax Appellate Tribunal under section 66(1), Indian Income-tax Act, 1922. They are : "1. Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was not entitled to the relief under section 25(4) in the year 1949-50? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the succession took place on October 12, 1948, and, consequently, the benefit of section 25(4) could be availed of only in the year 1950-51 ? 3. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the sum of Rs. 4,810 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in respect of the assessment year 1949-50. Thereafter, on appeal by the assessee, the Tribunal also held that the date of succession was October 12, 1948, and came to the finding that the claim of the assessee to the benefits conferred by section 25(4) could be considered by the Income- tax Officer in the course of assessment proceedings for the year 1950-51. In regard to the first two questions, there is a definite finding of fact by the Tribunal that the succession took place on October 12, 1948. That date marks the commencement of the previous year relating to the assessment year 1950-51. The Tribunal has held that the claim for the benefit conferred under section 25(4) falls to be considered in the course of assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 1946-47. Therefore, it will be open to the assessee to make a claim with regard to any relief to which he is entitled under section 25(4) in the assessment year 1946-47. " There are also the observations of the Supreme Court in Commissioner of Income-tax v. K. Srinivasan and K. Gopalan : " The object of sub-sections (3) and (4) is to provide relief to a business for the double assessment suffered by it in the financial year 1922-23 and it is entitled to this relief in the year of assessment in which the income and profits of the accounting period in which discontinuance or succession takes place fall to be assessed. " In view of these observations, upon the finding of the Tribunal that succession took place on Octobe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase of the truck and, if so, for the year or years for which it had been allowed and whether the surplus of the sale proceeds over the written down value of the truck had been actually brought to tax by the Income-tax Officer under sec- tion 10(2)(vii). We have now received the supplementary statement from the Tribunal and the information disclosed by it is as follows : The truck was purchased in the previous year relevant to the assessment year 1946-47 for Rs. 9,000. It was sold during the previous year relevant to the assessment year 1949-50 for Rs. 11,810. No depreciation had been allowed after the purchase of the truck. As regards the point whether the surplus of the sale proceeds over the written down value had been actually brou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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