1975 (2) TMI 15

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.... Indian Income-tax Act, 1922. The assessment year involved is 1957-58. The dispute relates to an aggregate amount of Rs. 18,295 made up of the following three items : Rs. (a) Claims and refund 11,366 (b) Insurance payable 4,778 (e) Boboins Bills issued 2,151 --------------- 18,295 ---------------- The assessee's case was that in its capacity as a clearing and forwarding ....

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....were credited to the " claim and refund account " and when the same account was debited (sic). A sum of Rs. 11,366 remained as credit balance in the said account in respect of which no claims were received from the constituents and they were not traceable. The assessee, therefore, treated it as its income and transferred it to the profit and loss account. With regard to the second item of Rs. 4....

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....s own purchases. The sum of Rs. 2,151 represented the surplus on that account and like the other two amounts the assessee in the relevant year transferred this amount also to the profit and loss account. The Income-tax Officer treated these amounts as the assessee's income. The assessee's appeal to the Assistant Commissioner of Income-tax and to the Tribunal failed. The Tribunal has at the inst....

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....in the previous year relating to the assessment year 1957-58. It is, therefore, not possible to accept the assessee's contention that the amounts in question represented the capital or casual gains or they did not pertain to the assessment year in question. When the assessee itself has chosen to treat these items as income of the previous year relevant to the assessment year 1957-58, it cannot be ....