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TMI Blog1971 (9) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... 57 for which the previous year is the year ended on March 31, 1956. The assessee was maintaining its accounts on cash basis and was taxed on cash basis in the earlier years. The assessee's only source of income in this year was interest on securities. The assessee had advanced some moneys to M/s. M.K.M.O. Sugar Mills (Private) Ltd., Munderwa, District Basti (hereinafter referred to as " the mills" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded this sum of Rs. 64,020 as the income of the assessee in the following words: "Interest on deposit with M.K.M.O. Sugar Mills, Munderwa, Basti as per compromise deed dated February 6, 1956, in accordance with the compromise deed the Hindu undivided family received Rs. 3,69,850 instead of Rs. 3,05,830 including interest of Rs. 64,020 which is treated as income of the assessee." In appeal bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, clear that on February 8, 1956, for the sake of convenience the amount was to be divided in the names of the plaintiff's sons in the books of the mill which will be deemed to have been paid interest to the extent of Rs. 64,020 (Rs. 3,69,850 minus Rs. 3,05,830)." In appeal before the Tribunal the assessee contended that, as the Appellate Assistant Commissioner had accepted the cash system ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion in the negative. See [1968] 68 I.T.R. 649. The assessee's representatives appealed to the Supreme Court. JUDGMENT The judgment of the court was delivered by HEGDE J.--The question referred to the High Court for its decision is: "Whether, on the facts and in the circumstances of the case, the Tribunal acted rightly in holding that the sum of Rs. 64,020 was not assessable as income of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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