1968 (12) TMI 28

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....epresenting uurealised dividends taxed in earlier years in computing the total income for the assessment year 1960-61 ? The assessee was a shareholder and director of the Famous Finance Corporation Pvt. Ltd., which was carrying on the business of distributing cinema films. The assessee held 1/3 of the subscribed share capital of the said company. He had made advances to the said company from time to time although he was not a money-lender and was not carrying on any money-lending business. The assessee, however, had other lines of business. In the assessment years 1950-51 to 1953-54, corresponding to S. Y. 2005 to S. Y. 2008, the assessee had debited the interest due to him from the company on the advances made by him to the company a....

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.... as a bad debt of his business under section 10(2)(xi) or at any rate it should have been allowed on the general principles of computation of the real income of business under section 10. As regards the second item, his contention is that, since the dividend amount has already borne tax in the previous years, on the assessee having failed to realise the amount, the same should be allowed as a deduction under section 12(2) or on general principles of equity. In our opinion neither of the contentions of the assessee is entitled to succeed. The findings of the departmental authorities and the Tribunal are that the assessee had no money-lending business and the advances made to the company were not in connection with any such money-lending b....