COMMISSIONER OF INCOME-TAX, BIHAR & ORISSA,PATNA vs M/S. KIRKEND COAL COMPANY

The Supreme Court held that Section 44 of the Indian Income-tax Act, 1922, applies only in cases of business discontinuance, not in cases of firm reconstitution. The Court clarified that penalties under Section 28 can be imposed on a reconstituted firm if the business continues, and that the Tribunal erred in relying on Section 44. The Court emphasized that only questions raised before the Tribunal can be addressed in a reference under Section 66, thus limiting the scope of the inquiry.