1986 (8) TMI 7

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.... assessed to income-tax for the assessment year 1967-68, the relevant accounting period ending on December 31, 1966. During the accounting year, the claims of the policyholders of the assessee in Burma to the extent of Rs. 50,000 became time-barred. The assessee adjusted the said Rs. 50,000 to its revenue account for the year 1960 in its Rangoon branch and thereafter, after deducting the expenses ....

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....e accounting year and should be included in the total income. It was noted that the assessee had not wound up its business in Burma and had been making efforts to obtain remittance of surplus amounts from Burma. The Appellate Assistant Commissioner confirmed the order of the Income-tax Officer. Being aggrieved, the assessee filed a further appeal before the Income-tax Appellate Tribunal. It was....

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.... transferred to the reserve for unexpired risks and (only) the balance of 60% was brought to assessment. The balance in the reserve for unexpired risks was carried forward to the next year and shown on the credit side of the revenue account and any additional reserve credited in the next year also came into this account. The whole of the amount received on account of premia was assessed to tax. ....

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....he opinion of this court: "Whether, on the facts and in the circumstances of the case, and on a correct interpretation of rule 5 of the First Schedule to the Income-tax Act, 1961, and of section 41(1) of the said Act, the Tribunal was justified in holding that the sum of Rs. 46,703 was not chargeable to tax ? " At the hearing, contentions raised in the proceedings below were reiterated befor....