G. R. NARASIMIER & Co. vs COMMISSIONER OF INCOME-TAX, MADRAS — 1972 PTD 77

Citation: 1972 PTD 77

Court: Madras High Court

Year: 1968

Decision Date: 1968-08-12

Parties: G. R. NARASIMIER & Co. vs COMMISSIONER OF INCOME-TAX, MADRAS

Headnotes

Case cited as 1972 PTD 77

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title: G. R. NARASIMIER & Co. vs COMMISSIONER OF INCOME-TAX, MADRAS Case No.: Tax (Reference No. 12 of 1965) Case No. 22 of 1965 Date of Judgment:1968-08-12 Reported As: 1972 PTD 77 Result: N/A JUDGMENT JUDGMENT VEERASWAMI, J.-This reference, under section 66(1) of the Indian Income-tax Act, relates to the assessm ent year 1961-62, and the question is: "Whether, on the facts and in the circumstances of the case, the assessment of the sum of Rs. 6,489 under section 12 instead of section 10 of the Income-tax Act, 1922, is justified in law ?" At the relevant time, the assessee was a firm of partnership carrying on a business of running a powerloom factory at Madurai with 12 powerlooms. The assessee manufactured hand--loom cloth for a number of years and for that purpose he used fixed assets consisting of machinery and building at No. 28, Chairman Muthuramier Road, Madurai. The business was carried on up to April 12, 1954, and thereafter the manufacturing was stopped, with the result that the machinery and buildings were lying idle. With effect from November 1, 1956, the howerlooms were, however, commissioned again to work by one Radhakrishnier under the terms of an agreement dated June 13, 1957. This agreement was renewed on April 16, 1958, and one of the terms of this agreement was that Radhakrishnier was at liberty to shift the powerlooms with all the related equipments to T. S. No. 539/1-17,…

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