Books of account interpreted broadly for loss allowance; mandamus for reference refused where the point was already settled.

The expression "books of the assessee" was read broadly for section 10(2)(vii) of the Indian Income-tax Act, 1922, so a memorandum register could qualify as a book of account and any defect in ordinary accounts would not by itself defeat allowance of the loss if the relevant entry was otherwise shown in that register. A question of law was recognised, but the Court declined to require a reference under section 66(2) because the point had already been settled by persuasive authority from other High Courts. The mandamus application was rejected, and the assessee's position was upheld.

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Issues: Whether the assessee's memorandum book could be treated as a book of account for the purpose of section 10(2)(vii) of the Indian Income-tax Act, 1922, and whether a mandamus should issue under section 66(2) requiring the Tribunal to refer the proposed questions of law.

Analysis: The application arose from the revenue's request for a reference on the footing that the memorandum register was not a book within the meaning of the relevant provision and that the loss had not been properly written off. The Court held that a question of law did arise, but it declined to compel a reference because the issue had already been settled by persuasive decisions of other High Courts. It accepted the view that the expression "books of the assessee" does not require any particular type of accounts, and that defective accounts do not affect the allowability of the loss if the relevant entry is otherwise shown in the memorandum register.

Conclusion: The application for mandamus was rejected and the assessee succeeded.

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