1982 (4) TMI 201

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....ls, Madras, for asst. yr. 1977-78. 2. The assessee is a registered firm doing business in manufacture and sale of refined and other oils. Debit balances in the accounts of partners as at the end of the accounting year on 31st March, 1977 were to the extent of Rs. 4,48,042 while the capital of the firm stood Rs. 1,75,000 and credit balances of partners stand at Rs. 87,980. The firm had claimed i....

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....ended that the principle followed by the Tribunal stands discredited in the decision of the High Court in T.C.P. No. 199 and 241 of 1977, dt. 9th Feb, 1978. It is claimed that the profit arises only on the determination of the income on the last day of the accounting year. The ld. counsel for the assessee on the other hand pointed out that there is a mistake in the grounds of appeal in the assumpt....

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....se that the net withdrawals could only be out of borrowings as current profits get determined only at the end of the year. As pointed out by the ld. counsel, Madras High Court has neither approved nor disapproved the principles consistently recognised by the Tribunal, as for example, in ITA No 520/Mds/1973-74, ITA No. 543/Mds/1977-78 dt. 7th July, 1978, ITA No. 1592/Mds/1974-75 and ITA No. 572/Mds....