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PETITIONER: R. G. S. NAIDU AND CO.
Vs.
RESPONDENT: COMMISSIONER OF INCOME-TAX ANDEXCESS PROFITS TAX, MADRAS(And
DATE OF JUDGMENT: 14/12/1960
BENCH: SHAH, J.C. BENCH: SHAH, J.C. KAPUR, J.L. HIDAYATULLAH, M.
CITATION: 1961 AIR 1007 1961 SCR (3) 271
ACT: Excess Profits Tax-Excess Profits, unassessed or under assessed--Assessment, if can be reopened-Apportionment of income-Excess Profits Tax Act, 1940 (XV of 1940), s. 15, r. 9, Sch. 1.
HEADNOTE: Under an agreement dated July 11, 1945, the appellants were appointed managing agents of the Coimbatore Spinning and Weaving Co. Ltd., for 20 years, and certain remuneration was provided for them including 10% commission on the net profits of the company due and payable yearly immediately after the accounts of the company were closed and commissions on purchases and capital expenditure of the company. Prior to October 1, 1944, the appellants were the managing agents of the Coimbatore Mills Agency Ltd., who were the managing agents of the Coimbatore Spinning and Weaving Co. Ltd. The year of account of the appellants ended on March 31, of the company on June 30, and of the Agency Company on September 30. For the assessment year 1945-46 the appellants submitted a return of their income which included the stipulated remuneration and commissions. This return was accepted by the Income-ta...