1934 (3) TMI 32

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....ily. The two questions referred are : (1) Whether the unrealized decree of Rs. 23,269 against Talatuf Husain and others entered in the interest Khata is taxable income for the purpose of Income Tax, while in fact the amount has not been received at all, and whether the assessment of the applicants is correct under the law and (2) Whether the system of keeping the account adopted by the assessee is....

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....he year in question. The claim for the Department is that the books should be used for accounting and assessment in accordance with Section 13, Income Tax Act. In other words, the proposition is that, although none of the decretal amount was received, the assessee should be charged Income Tax on this amount, because the assessee has shown the amount in his books. We consider that the Department wa....

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....t. 476 and Narain Das Bhagwan Das v. Commissioner of Income Tax 1934 Lah. 408. Reference was made for the assessee to Raghunandan Prasad Singh v. Commissioner of Income Tax 1933 P.C. 101 but we do not consider that this case has any bearing on the point. Learned Counsel for the Commissioner referred to Section 4, Income Tax Act, which states that the Act: shall apply to all income, profit....

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....g is not attached to the word. "Income" is not actually defined in the Act; but in Section 2(15) "total income" is stated to mean the "total amount of income, profits and gains from all sources to which this Act applies computed in the manner laid down in section 16." There is nothing in this definition or in Section 16 which would imply that the "total income" was to include an amount which had b....