1964 (8) TMI 80

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....( 2. ) The quantum of the addition is not challenged. THE controversy is as to the right to make an addition on the facts and in the circumstances of of the case. The addition represents interest not included in the profit and loss account of the assessee in pursuance of a direction from the reserve Bank of India . The interest concerned represented the interest due, but not received, on what are termed the "sticky" advances of the assessee. The Reserve Bank of India conducted an inspection into the affairs of the assessee under S. 35 of the banking Companies Act, 1949, and as a result of that inspection imposed certain conditions on it. One of those conditions, as can be seen from Annexure A to the Statement of the Case, was ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....edit the amount of interest to the Profit and Loss Account. This direction cannot over-ride the requirements of the Income-tax Act. It has not that statutory binding force". We are in agreement with the conclusion reached by the tribunal. The charge of income-tax under the Indian Income-tax act, 1922, is in respect of the total income of an assessee. S. 4 defines the gamut of total income. S. 2 (15) which purports to define total income merely says that total income means total amount of income, profits and gains referred to in sub-section (1) of S. 4 computed in the manner laid down in the Act. ( 4. ) S . 13 of the Indian Income-tax Act, 1922, provides: "income, profits and gains shall be computed, for the purposes of S. 10 ....