WHEELER A H AND CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) -

(2.) THIS is a reference made by the Income-tax Appellate Tribunal under Section 66 (1) of the Indian Income-tax Act read with Section 21 of the Excess Profits Tax Act. The questions referred for the decision of this Court by this reference are as follows

(3.) AT the time when an election is made one of the two alternative rights is abandoned, and, having regard to the nature of the act of "election", it is not possible to hold that a right to retract subsists after the act becomes final and conclusive. It should not be open to the party to whom the right of election is given for the exercise of which right a time-limit is imposed, to retract the same after the expiry of the time-limit, as that would nullify the statute. Thus the Crown would not be bound by an act of its officer who acts in a manner which is opposed to the terms of the statute. I am, therefore, of opinion that the consent of the Excess profits Tax Officer would not avail the assessee and the election, which was deliberately made, could not be retracted. For these reasons, I would answer the question No. 1 in the negative.