1953 (10) TMI 7 - SUPREME COURT

Whether there is any material for the Tribunal's finding that the appellants (respondents in this case) were being assessed on cash basis in the prior years ?

Whether on the facts and in the circamstances of the case the Appellate Tribunal's finding that the sum of ₹ 2,26,850 could not be assessed for the assessment year 1942-43 is correct in law ?

Held that:- The sum had irrevocably entered the debit side of the company's account as a disbursement of managing agency commission to the firm and had been appropriated to the firm's dues and the same sum could not again be entered in a suspense account at a later date. The sum, therefore, belonged to the firm and had to be included in the computation of the profits and gains that had accrued to it unless the firm had regularly kept its accounts on a cash basis, which is not the case here. Appeal allowed.