Excess profits tax cannot be imposed on a disrupted Hindu undivided family after it ceases to exist before assessment.

Excess profits tax could not be sustained against a Hindu undivided family that had disrupted before the assessment order was passed, even though notice had been issued and a return filed during the chargeable accounting period. The relevant Act contained no provision authorising assessment on a Hindu undivided family that had ceased to exist after notice but before completion of assessment. The earlier view on this point had been approved by the Supreme Court, and the question was answered in favour of the assessee and against the department.

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Issues: Whether the excess profits tax assessment on the Hindu undivided family for the relevant chargeable period was rightly cancelled.

Analysis: The chargeable accounting period ended before the assessment was made. A notice had been issued and the return filed, but the Hindu undivided family had disrupted before the assessment order was passed. The relevant Act contained no provision enabling excess profits tax to be imposed on a Hindu undivided family which had ceased to exist after notice but before completion of assessment. The earlier view on the point had been approved by the Supreme Court.

Conclusion: The question was answered in the affirmative, in favour of the assessee and against the department.

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