Law:

Section:

JUDGMENT Chagla, CJ.-There is absolutely no merit in the case of the assessee, but Sir Jamshedji rightly reminds us that the Income-tax Act does not concern itself with equity and that we must strictly construe the provisions of the Act as the Legislature has enacted them, and, if the taxpayer is entitled to a relief, whether equity is on his side or not, he should be given that relief. Fortunately in this case we can reconcile both law and equity. The assessee company was assessed to excess profits tax for the years 1941, 1942 and 1943 and in respect of all these three years of assessment he succeeded in getting an order of the Central Board of Revenue under Section 26(3) of the Act. That section provides that "If on an application made to it through the Excess Profits Tax Officer the Central Board of Revenue is satisfied that the computation in accordance with the provisions of Schedule I of the profits of a business during any chargeable accounting period would be inequitable", owing to any of the circumstances therein mentioned (and the relevant circumstance in this case is that "the provision of buildings, plant or machinery which will not be required for the purposes of the business after the termination of the present hostilities") the Central Board of Revenue may direct that such allowances shall be made in computing the profits of the business during that chargeable accounting period as the Central Board of Revenue thinks just. Now, it was represented by the assessee to the Central Board of Revenue in respect of its assessment for all the three years that provision for buildings, plant or machinery would not be required for the purposes of its business after the termination of the war ; and in view of this statement made by the assessee an order was made by the Central Board of Revenue giving certain allowances to the assessee in respect of the three assessments under the Excess Profits Tax Act. The order of the Central Board of Revenue expressly states that "by reason of the following circumstances, viz., that the provision of buildings, plant or machinery which will not be required for the purposes of the business after the termination of the present…

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