1938 (5) TMI 13

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....ggarwal for J. N. Aggarwal, for the Respondent. ORDER. This case turns upon the construction to be put upon the word 'income' as used in Section 28 of the Income Tax Act. By that section the income tax authorities are empowered to impose a penalty upon any assessee who "has concealed the particulars of his income or has deliberately furnished inaccurate particulars of such income". ....

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....er to determine the true connotation of the term 'income' as used in the Income Tax Act it will be necessary to refer to the various sections in which this term has been used. Section 2(15) defines the term 'total income' as "total amount of income, profits and gains from all sources to which this Act applies computed in the manner laid down in Section 16." Section 3 determines all....

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....me of an assessee. Section 22 (2) provides for the return of income to be submitted by the assessee and Sections 23(1) and (3) authorise the Income-Tax Officer to assess the total income and determine the sum payable by an assessee on the basis of his return. It would thus appear that the word 'income' in all these sections has not been used in its dictionary meaning, but in a technical se....

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.... 295-97). That case is on all fours with the present case inasmuch as it particularly relates to bad debts. Those remarks are:- "Although the Act nowhere in terms authorises the deduction of bad debts of a business, such a deduction is necessarily allowable. What are chargeable to income-tax in respect of a business are the profits and gains of a year ; and in assessing the amount of the profit....