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TMI Blog1957 (1) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessment for 1124 was made on 22-11-1124 on a total income of ₹ 66738. Later on it was ascertained that assessee had large bank deposits, which were not recorded in his books of accounts and that the income, from these deposits were also not assessed to Income Tax. Notice under Section 47 was issued on 23-8-1951 to tax the escaped incomes. Assessee filed a return on 27-9-1951. Subsequently on 22-10-1951 assessee filed a disclosure statement showing ₹ 160000 as untaxed income from sundry business during 1942 to 1947. Assessee also filed an amended return of income for 1124 assessment on 28-11-1951 showing a total income of ₹ 99531 which included untaxed income of ₹ 30000 under business and ₹ 2796 un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 35 of the Travancore Act reads as follows : Where the person who was at the commencement of this Act carrying on any business, profession or vocation on which tax was at any time charged under the provisions of the Travancore Income Tax Act 8 of 1096, is succeeded in such capacity by another person the change not being merely a change in the constitution of a partnership, no tax shall be payable by the first mentioned person in respect of the income, profits and gains of the period between the end of the previous year and the date of such succession, and, such person may further claim that the income, profits and gains of the previous year shall be deemed to have been the income, profits and gains of the said period. Wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discontinuance or succession. It does not refer to the exemption granted by Sub-sections (3) and (4) in respect of the profits of the period between the end of the previous year and the date of discontinuance or succession. Therefore, the assessee's claim to elect for exemption in respect of the profits of the previous year instead of the profits of the said period cannot be entertained after the lapse of a year from the date of discontinuance or succession, but exemption in respect of the profits of the said period must be granted to the assessee even if he makes a claim to such exemption after the lapse of the period of limitation prescribed by this sub-section. It is obligatory upon the Revenue to refrain from charging the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich was being carried on by him was succeeded to by a Limited company by name Messrs. The Orion Coir Mats and Matting Manufacturers Ltd., as and from 1-1-1948. Your petitioner submits that under Section 35(4) of the Travancore Income-Tax Act, 1121, no tax was payable by the petitioner in respect of the income, profits and gains of the period between the end of the previous year and the date of such succession i.e. between the period 31-12-1948 to 31-12-1947. Your petitioner submits that at the time of making the assessment the Income Tax Officer Higher Income Circle, Alleppey, overlooked the fact that your petitioner was entitled to certain reliefs under the Statute and not only did he not grant to the petitioner the statutory relief h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1947; and (b) that the omission to grant relief on the basis of a succession in 1947 is a mistake apparent from the record of the assessment. 9. Even now the date on which the succession took place is a matter of controversy. In Ext. I the petitioner stated that the succession was as and from 1-1-1948 . If it were on 1-1-1948 the petitioner will not be entitled to any financial benefit by the application of Section 35(4) of the Travancore Income Tax Act, 1121 (Section 25(4) of the Indian Income Tax Act, 1022). The case of the affidavit of the petitioner filed in support of the petitioner is : I discontinued my the said business on the last day of December, 1947 and sold it to a limited liability company namely the 'Orion Coir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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