1977 (12) TMI 15

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....AIR C.J.--The question referred to us for the assessment year 1965-66 by the Tribunal, Madras Bench, reads as follows : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in setting aside the assessment made by the ITO for the assessment year 1965-66, and directing the ITO to redo the same after giving an opportunity to the assessee to exercise the optio....

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....ent of the business, the assessee contending that it was on December 31, 1963, and the revenue contending that it was earlier. As mentioned already, this controversy has now been settled by the Tribunal's finding that the business commenced on April 29, 1963. The Tribunal, after having determined the date of commencement of the business, proceeded to observe that the assessee would have a right....

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....herefore, come into play at all. Then, a larger contention was raised that for a newly set up business as in the present case, it is only cl. (e) of sub-s. (1) of s. 3 that would apply. But even the terms of cl. (e), either (i) or (ii), are not satisfied on the facts of this case. Cl. (e) has a limited application. It is not a provision dealing with all cases of business that have been newly se....