FIRM OF BHAGAT RAM MOHANLAL vs THE COMMISSIONER OF EXCESS PROFITS TAX, MADHYA PRADES

The Supreme Court examined the implications of Section 7 and Section 8(1) of the Excess Profits Tax Act, 1940, in the context of a reconstituted partnership following a partition in a Hindu undivided family. The Court held that the change in partners constituted a discontinuation of the old business, thus disallowing the relief previously granted under Section 7. The order of the Excess Profits Tax Officer was deemed a mistake apparent on the record under Section 20, leading to the setting aside of the refund order for the appellant firm.