Judgment

KAPUR, J. : (For himself and S. K. DAS J.) This is an appeal against the judgment and order of the High Court of Bombay passed in Income Tax Reference No. 31 of 1956. The appellant is the Commissioner of Income-tax and the respondent is a firm carrying on business in Bombay and the question for decision arises under the Business Profits Tax Act (Act XXI of 1947) hereinafter referred to as the Act.

2. The assessment relates to the year of assessment 1949-50 and the chargeable accounting period was from November 13, 1947 to October 31, 1948. On January 12, 1953, the Income-tax Officer issued a notice on the respondent under S. 11(1) of the Act in respect of the abovementioned chargeable accounting period which was served on the respondent on January 21, 1953. The respondent filed a return under protest. The assessment was completed by the Income-tax Officer on November 30, 1953. Against this order the respondent took an appeal to the Appellate Assistant Commissioner on the ground that the respondent was not liable to Business Profits Tax because it was beyond the period of four years limitation under S. 14 of the Act. This plea was upheld by the Appellate Assistant Commissione