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1965 (10) TMI 21 - SC - Income TaxWhether the sum of ₹ 27,06,593 was assessable as a profit of the assessee-company of the previous year relevant to the assessment year 1949-50 in accordance with the fourth proviso to section 10(2)(vii) of the Indian Income-tax Act ? Held that:- Prima facie, the allowances, deductions and deemed profits shall be ascertained in terms of the statutory provisions, unless the statute itself accepts the principles of commercial accountancy in a particular case. In the present case, the compensation to the extent mentioned in the proviso received only in the accounting year was by fiction treated as profit. There is, therefore, no scope for holding that the expression " received " means " receivable ". For the aforesaid reasons, we hold that, as the compensation for the loss of machinery and buildings by fire was not actually received by the company during the accounting year, the said amount could not be assessed during the assessment year. Appeal dismissed.
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