Double taxation claim on change from receipt to accrual basis rejected; reference declined as questions did not arise from the Tribunal order.

Interest on securities assessed on a receipt basis in earlier years and on an accrual basis for the assessment year in question was examined in the context of alleged double taxation. The Court noted that an amount brought to tax on accrual could not also have been received and taxed in the earlier years merely because the method of assessment changed. It therefore rejected the premise that double taxation necessarily arose from the switch in basis. As the questions were not seen as arising from the Tribunal's order, the Court declined to answer the reference.

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Issues: Whether the Tribunal was bound to decide the correctness of deletion of the sum of Rs. 54,996 while assessing income for the assessment year 1965-66, and whether that sum was liable to be considered in that year in view of the alleged double taxation arising from a change from receipt basis to accrual basis.

Analysis: The questions proceeded on the premise that interest on securities had been taxed on receipt basis in earlier years and on accrual basis for the year in question. The Court noted that an amount assessed on accrual basis could not have been received in the earlier years and taxed again in those years, and that double taxation would not arise merely because the method of assessment changed from receipt basis to accrual basis.

Outcome: The Court held that the questions did not arise from the Tribunal's order and declined to answer the reference.

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