1960 (11) TMI 10

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... The facts are as follows: Setabgunj Sugar Mills Ltd. is the appellant. This company was incorporated in 1934, and was established to take over some sugar mills run by a firm. Included in the objects for which the company was established was the business of buyers, sellers and dealers in jute, gunnies, oil seeds, etc. For the first few years, the company carried on the business of manufacture and sale of sugar only. In the accounting year ending August 31, 1945, the company had some transactions in gunnies and made a profit. In the next accounting year ending August 31, 1946, the company made also a profit in transactions in gunnies and jute. In the accounting year ending August 31, 1947 (corresponding assessment year being 1948-49), the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....any then asked the Tribunal to make a reference to the High Court on four questions of law which, it stated, arose out of the Tribunal's order. The Tribunal declined to make a reference. The company next moved the High Court under section 66(2) of the Act for calling upon the Tribunal to state a case on the four questions, but its application was summarily dismissed. The company has now, with special leave, appealed against the order of the Tribunal reversing the decision of the Appellate Assistant Commissioner and also against the order of the High Court declining to call for a statement of the case. The question whether, on the application of the settled tests, different ventures carried on by an individual or a company form the same bu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....legal inference from proved facts, and it is one of mixed law and fact, on which depends the application of section 24(2) of the Act. In our opinion, a question of law did arise in the case, on which the High Court should have asked for a statement of the case. That question of law is : " Whether on the facts and circumstances of the case, the business activities of the company to wit, manufacture and sale of sugar and sale and purchase of gunnies, jute, mustard seeds constituted the same business within the meaning of section 24(2) of the Indian Income-tax Act, 1922 ? " We accordingly allow Civil Appeal No. 144 of 1958, with costs, and direct the High Court to call for a statement of the case from the Tribunal on this question, and dis....