Judgement

Appeal (No. 62 of 1922) from an order of the High Court (October 21, 1920) discharging a rule nisi obtained by the appellants for an order under s. 45 of the Specific Relief Act (I. of 1877).

Law Rep. 50 Ind. App. 227 ( 1922- 1923) Adcock, Ashdown and C o. Ltd v. C hief Revenue-Authority

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The appellants were assessed by the collector of income tax to excess profits duty for the accounting period of twelve months ending on December 31, 1918, at Rs.8,79,582. For the purpose of the assessment they had elected to have the standard profits of the business ascertained under s. 6, sub-s. 1 (b) (iii.), of the Excess Profits Duty Act (X. of 1919). They applied to the Chief Revenue-authority to discharge the assessment under s. 23 of the Indian Income Tax Act (VII. of 1918), as applied by s. 15 of the Excess Profits Duty Act, 1919, on the ground that a deduction ought to have been made in accordance with the first proviso to s. 6, sub-s. 1 (6), of the Excess Profits Duty Act, 1919, in computing the profits chargeable on account of an increase of average capital employed in the business at the end of the accounting period, or in the alternative to state a case for the opinion of t