TMI Blog1943 (12) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod Sambat 1989-90 corresponding to November, 1932, to October 1933, the assessee originally was taxed on a total income of ₹ 16,272; subsequently supplementary assessment proceedings were started by the Income-tax Officer of Budaun under Section 34 of the Act with a view to assess certain income which had escaped assessment and a fresh assessment was made by him on a total income of ₹ 29,906. This figure included a sum of ₹ 12,405 found to be the profits of the two businesses mentioned above carried on outside British India by the assessee and remitted to British India during the accounting year within the meaning of Section 4 (2) of the Income-tax Act. Against this assessment an appeal was made but the Assistant Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Profit 2042 Loss 160 (2) 1987-88 (1930-31) Profit 937 ,, 4873 Profit 5810 (3) 1988-89 (1931-32) Loss 2574 ,, 1266 Loss 1308 (4) 1989-90 (1932-33) Profit 3348 ,, 1205 Profit 4553 Net Profit 8895 The remittances made by the foreign firm at Sambhar to the home firm at Ujhani have also been determined by the Department and their statement is as follows :- Sambat Remittance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITC 54 ; A.V.K.R.M. Kasinalhan Chettiar v. Commissioner of Income-tax, Madras [1935] 8 ITC 96 ; 3 ITR 89 ; L.C.T.S.P. Subramanyam Chettiar v. Commissioner of Income-tax, Madras [1935] 9 ITC 47 ; 3 ITR 346; Chunnilal Nahtmal v. Commissioner of Income-tax, Central Provinces and Berar [1931] 5 ITC 221 ; R.B. Seth Bansilal Abirchand v. Commissioner of Income-tax, Central Provinces and Berar [1931] 5 ITC 347 ; Messrs. Tar a Chand Pohu Mal v. Commissioner of Income-tax, Punjab, N.W.F. and Delhi Provinces [1936] 9 ITC 256 ; 4 ITR 312 ; and M.R.A.R.P.L. Family v. Commissioner of Income-tax, Burma [1935] 9 ITC 158. These cases are undoubtedly an authority for the proposition that if the proved or admitted profits of a particular assessee in his for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough ultimately it might result into a profit cannot be treated as profit before the determination of the year. It follows that the sum of ₹ 4,553 which represents the profit of 1989-90 Sambat could not be included in the remittance of ₹ 42,852 made in the course of the Sambat year 1989-90 and the view of the Department that there was any presumption about its inclusion is legally incorrect. In the Sambat year 1987-88 undoubtedly there was a profit of ₹ 5,810 to the assessee and if nothing else had been known about the disposal of this sum it may well have been presumed that this sum remained in the hands of the assessee undisposed of and was included in the remittance which was made in the year 1989-90 of ₹ 42,85 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assistant Commissioner and the Commissioner that the alleged profits of ₹ 12,405 were not included in the remittance of ₹ 42,852 and the Commissioner granted to him relief to a certain extent by reducing the profits included in the remittance from ₹ 12,405 to ₹ 8,895. It is true that the precise ground upon which he has succeeded before us, namely that the sum of ₹ 8,000 odd is made substantially of two items one of which could not be deemed, in law, to be the profit in the year of accounting and can only be deemed to be the profit in the following year and the other sum was included in an earlier remittance and was absorbed by the next year's loss was not put forward in so many words before the Assist ..... X X X X Extracts X X X X X X X X Extracts X X X X
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