TMI Blog1970 (8) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... ld not be determined by drawing inferences from what was done in respect of the assessment of an earlier year - assessee's appeal is allowed - - - - - Dated:- 11-8-1970 - Judge(s) : A. N. GROVER., J. C. SHAH. and K. S. HEGDE. JUDGMENT The judgment of the court was delivered by GROVER J.- This is an appeal by certificate from a judgment of the Madras High Court answering the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment under section 23(4) estimating the assessee's income at Rs. 1,80,000. On appeal to the Appellate Assistant Commissioner it was reduced to Rs. 1,30,000. In the accounts relating to the assessment year 1950-51, the assessee had claimed a sum of Rs. 4,09,786 as establishment charges which included a sum of Rs. 71,949 representing the annual bonus payable to the employees. This amount had a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 23(4) having as a guide the earlier year's assessment or a total income of about Rs. 1,30,000. No doubt in the assessment of 1949-50, there was a bonus claim too. From this feature alone, it is difficult to conclude that the Income-tax Officer had scrutinised the computation and had considered the bonus too in his estimate. Actually, in the manner the estimate has been made, it would appear t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of a trading liability of the assessment year 1950-51, or it had been proved that the assessee had obtained any benefit relating to such trading liability in the assessment year 1957-58, which would attract the provisions of section 10(2A) of the Act. That provision only applies when an allowance for deduction has been made in the assessment of any year in respect of any loss, expenditure or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be determined by drawing inferences from what was done in respect of the assessment of an earlier year. In our judgment the finding of fact of the Appellate Tribunal did not warrant the answer returned by the High Court which is hereby discharged. The answer would thus be in the negative and in favour of the assessee. The appeal is accordingly allowed with costs. Appeal allowed. - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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