R. G. S. NAIDU AND CO. vs COMMISSIONER OF INCOME-TAX ANDEXCESS PROFITS TAX, MADRAS(A

The Supreme Court held that under Section 15 of the Excess Profits Tax Act, 1940, the Tax Officer is permitted to reopen assessments if there is an under-assessment due to discrepancies in accounting periods. The Court confirmed that the apportionment of commission under Rule 9 of Schedule 1 of the Excess Profits Tax Act was valid, as the remuneration was payable for a fixed period and needed to be apportioned accordingly. The appeal was dismissed, upholding the revised assessments made by the Tax Officer.