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PETITIONER: COMMISSIONER OF INCOME-TAX, MADRAS
Vs.
RESPONDENT: K. SRINIVASAN AND K. GOPALAN.
DATE OF JUDGMENT: 22/12/1952
BENCH: DAS, SUDHI RANJAN BENCH: DAS, SUDHI RANJAN MAHAJAN, MEHR CHAND BHAGWATI, NATWARLAL H.
CITATION: 1953 AIR 118 1953 SCR 463 CITATOR INFO : F 1956 SC 367 (12) RF 1961 SC1633 (10,25) F 1969 SC1068 (6)
ACT: Indian Income-tax Act (XI of 1922), ss. 2 (1), 25 (3) & (4), 26 (2) -Firm charged under Act of 1918-Accounting year ending on 30th June each year- Transfer of business on 1st March, 1940 -Exemption from tax under s. 25 (4)-Period for which exemption can be granted-"End of Previous year", meaning of-Interpretation -Directions in Income -tax Manual, value of.
HEADNOTE: Two brothers who had been carrying on in partnership a business, which had been assessed to income-tax under the Indian Income-tax Act of 1918 and the accounting year of which was a period of 12 months ending on the 30th June each year, transferred the business to a limited company on the 1st March, 1940, and claimed in the assessment for the year 1940-41 that under s. 25 (4) of the Income-tax Act, 1922, they were not liable to pay income-tax on the income of their business from 1st July, 1938, up to 29th February, 1940, a period of 20 months. The Income-tax authorities were of the view that exemption could be claimed only...