1945 (4) TMI 15

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.... This is an application under Section 66(3) of the Indian Income-tax Act against an order passed by the Commissioner of Income-tax, Central Provinces and United Provinces, on a combined application made to him under Section 33 and 66(2) of the Income-tax Act. 2. The points on which the assessee wishes us to require the Commissioner of Income-tax to state a case are three. The first is in respe....

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....Commissioner himself that the accounts were kept in such a way-counterfoils were not kept and receipts were not issued-as to make it impossible to ascertain what the sales in actual fact were. In such circumstances the Income- tax Department is entitled to consider the surrounding circumstances from which, the income of the assessee can be deduced, and this has been done and is permissible. Indeed....

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....this bare statement is not supported by any accounts or entries in account books whatever. The contention is that the property in these vehicles remained with the assessee and that what he received was purely hire for the vehicles and consequently it is machinery let on hire and that he is entitled to depreciation allowances on it. The contention is illogical. With the last instalment paid, if all....

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....rchase system do not come within Section 12(3) within the definition of "machinery let on hire". 5. The last point urged is that the sum of Rs. 756/- should have been allowed as a bad debt. Normally one would expect that a vehicle of which repossession was taken on account of default in the payment of instalments on a hire-purchase agreement would be more valuable than the total sum of instalme....