Judgement

VENKATARAMA AYYAR J. : This is an appeal from the judgment of the High Court of Bombay on a reference under Section 66(1) of the Indian Income-tax Act, and the question for determination is as to the validity of certain re-assessments made under Section 15 of the Excess Profits Tax Act. which will hereafter be referred to as the Act.

2. In proceedings for assessment of excess profits for the year 1941, the appellant Company applied for relief under S. 26(3) of the Act, which so far as is material for the purpose of this appeal, runs as follows :

"If on an application made to it through the Excess Profits Tax officer the Central Board of Revenue is satisfied that the computation in accordance with the provisions of schedule I of the profits of a business during any chargeable accounting period would be inequitable, owing to any of the following circumstances, namely-

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(b) the provisions of buildings, plant or machinery which will not be required for the purposes of the business after the termination of the present hostilities;

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The Central Board of Revenue may direct that such allowances shall be made in computing the profits of the business during that chargeable accou