AIR 1970 SUPREME COURT 1298

Supreme Court Of India

(From Calcutta: 67 Cal WN 138)

Hon'ble Judge(s): J. C. Shah, K. S. Hegde , JJ

(A) West Bengal Cess Act (9 of 1880) , S.75— Determination of annual net profits for assessment - Owner of coal mine supplying coal to his own workshops and factories - Value of coal supplied can be taken into account in determining profits of mine. Where the profit derived from the working of a mine is imbedded in the profits earned by the sale of the ultimate product, it is open for the assessing authority to disintegrate that profit and to find out the profits earned by the mine. The fact that in the one case the winning was that of the iron and in the other it is coal makes no difference in principle. Thus, where the assessee an owner of a coal mine had supplied the coal extracted from the mine to his own workshops and factories for carrying the manufacturing process, it is open to the assessing authority to take into consideration the value of the coal so supplied in computing the profits of the colliery for assessment of cess under Section 75, Bengal Cess Act. AIR 1963 SC 577, Rel. on.(Para 8) (B) West Bengal Cess Act (9 of 1880) , S.102— Finality of valuation - Mode of computation of net profits - Is a matter for assessing authorities except where it is in violation of law - Mistake in computation has to be rectified by following procedure under Act which is precise and self-....