SINHA, J.

1. : THIS is a reference under s. 66(1) of the IT Act. The question referred is in the following terms:--

"Whether in the facts and circumstances of this case s. 14(2) of the EPT Act is a bar to recovery of the excess profits tax for the chargeable accounting period ended the 30th of April, 1945, from the purchaser, Ramnath Bajoria."

2. THE facts giving rise to this reference are as follows : For the hargeable accounting period commencing on 1st May, 1944, and ending on 30th April, 1945, and assessment was made under the EPT Act on the unregistered firm of Manton and Co. THE net demand was Rs. 1,48,260. THE firm consisted of three partners. On 23rd July, 1946, the business was sold by the firm to Ramnath Bajoria by an agreement. By cl. 2 of the agreement the price was fixed at Rs. 1,86,965-10-11 and was payable in certain instalments. Clause 7 of the agreement provided as follows :--

"All income-tax and excess profits tax in respect of the said business made and outstanding for the year first day of May one thousand nine hundred and forty-five to the thirtieth day of April one thousand nine hundred and forty-six and all Bengal sales tax from the first day of August