1971 (2) TMI 33

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....ances 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 was rightly taxed and as profit under section 10(2)(vii), second proviso, of the Indian Income-tax Act, 1922 ? " The assessee is a Hindu undivided family carrying on business under the name and style M/s. Badri Prasad Jagan Prasad, Agra. It has a branch styled as M/s. Jagan Prasad Shiv Prasad of Achnera. The assessee was assessed under the Indian Income-tax Act, 1918. In assessment proceedings for the assessment year 1949....

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....inding 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 for the year 1950-51. Clearly, no tax was chargeable for any profits that may have accrued on October 12,1948, the date on which the succession took place. The profits of the broken period are exempt from tax. The Tribunal has also found that, an application was made within time by the assessee that the profits of the previous year should be substituted by the profits of the broken period. It was held that the benefit so a....

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....y 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 October 12, 1948, we are of opinion that the Tribunal was right in holding that the assessee was not entitled to the benefit of section 25(4) in the year 1949-50 but he could avail of that benefit in the year 1950-51. The first two questions referred are answered in the affirmative. As regards the third question the facts are these. The assessee was carrying on a branch business under the name and style of M/s. Jagan Pras....