Judgment

GULAM HASAN J. : These three appeals arise from the judgment & order of the Madras High Court dated 2-2-1950, delivered on a reference by the Income-tax Appellate Tribunal (hereinafter referred to as The Tribunal ), whereby the High Court answered the first referred question in the negative, and as regards the second question Satyanarayana Rao, J. answered it in the affirmative, while Viswanatha Sastri J. answered it in the negative, as a result of which the judgment of Satyanarayana Rao J. ultimately prevailed. They relate to the assessment for 1942-1943 and are filed by the Commissioner of Income-tax, while Appeal No. 132 of 1952 which relates to 1943-1944 is filed by the assessee, and is dealt with separately.

2. The two questions which were referred in respect of the first group of appeals are as follows :

(1) Whether there is any material for the Tribunal s finding that the appellants (respondents in this case) were being assessed on cash basis in the prior years?

(2) Whether on the facts and in the circumstances of the case the Appellate Tribunal s finding that the sum of Rs. 2,26,850/- could not be assessed for the assessment year 1942-43 is correct in law?

3. The asses