https://www.taxtmi.com/caselaws?id=168580 Income may be computed on a reasonable basis where an assessee's accounting method does not properly disclose receipts, including sums first appropriated to interest in the year of account and not previously taxed. Open payments on a debt are ordinarily applied first to outstanding interest, but only to the extent of the untaxed balance. Assets transferred in settlement may be treated according to their legal character: promissory notes are not money's worth, and assets properly appropriated to capital are not taxable as interest. An estimate of income is sustainable where records are unreliable and past assessments support it. Arrears paid as part of the price of acquiring a colliery are not deductible business expenditure. en-us Mon, 23 Jan 1933 00:00:00 +0530 Fri, 13 Mar 2015 14:48:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168580 Income may be computed on a reasonable basis where an assessee's accounting method does not properly disclose receipts, including sums first appropriated to interest in the year of account and not previously taxed. Open payments on a debt are ordinarily applied first to outstanding interest, but only to the extent of the untaxed balance. Assets transferred in settlement may be treated according to their legal character: promissory notes are not money's worth, and assets properly appropriated to capital are not taxable as interest. An estimate of income is sustainable where records are unreliable and past assessments support it. Arrears paid as part of the price of acquiring a colliery are not deductible business expenditure. Case-Laws Income Tax Mon, 23 Jan 1933 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168580