Dalmia Dadri Cement Ltd. vs Commissioner of Income Tax (Central)

In this case, the following question of law was referred for our opinion:

Whether, on the facts and in the circumstances of the case, the assessee''s profits and gains earned in the calendar year 1956 were assessable to tax for the assessment year 1957-58 at the rates prescribed by the Finance Act, 1957, or in accordance with Clause 23 of the agreement dated 1st April, 1938, entered into between the assessee-company and the erstwhile Jind State ?"

The learned counsel for the assessee has frankly conceded that the answer to this question must be returned in view of the decision of the Supreme Court in Dalmia Dadri Cement Co. Ltd. Vs. The Commissioner of Income Tax, as follows:

"The profits and gains earned by the assessee in the calendar year 1956 were assessable to tax for the assessment year 1957-58, at the rates prescribed by the Finance Act, 1957, and not in accordance with Clause 23 of the agreement dated 1st April, 1938, entered into between the assessee-company and the erstwhile Jind State.

Thus, we answer the question , in favour of the revenue and against the assessee. There will be no order as to costs.