1978 (6) TMI 1

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....aimed credit balances written off during the previous year was liable to be included in the assessee's total income for the assessment year 1955-56 ? " The facts found and/or admitted are shortly as follows. In the assessment year in question, the assessee claimed that a sum of Rs. 49,217 representing unclaimed credit balance written off during the year should not be treated as revenue receipt. Rs. 43,288 out of the said unclaimed credit balance represented under-charges in respect of the freight for the under-loaded wagons, which the customers of the assessee had to pay under the Railway Rules, in spite of the fact that the wagons in question were not loaded to their full capacity by the collieries. The assessee claimed these under-c....

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....assessee preferred claims in respect of undercharges with the collieries concerned for the excess freight paid in respect of the coal not supplied and realised the same. The amounts so realised were kept in a credit balance and the payments were made to the permit holders/customers from these receipts as and when claims were preferred by them. After meeting such claim there was a sizeable balance left, which the assessee transferred to the profit and loss account under the head " Miscellaneous receipts ". In the relevant year, such unclaimed credit balance amounted to Rs. 49,217. The Tribunal came to the conclusion that there was no reason to differ from the decision of the Tribunal for the previous year and accordingly held that the author....