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TMI Blog1967 (1) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year is 1957-58, the previous year being the year ended 3rd February, 1957. During the relevant year, the assessee received a sum of Rs. 32,218 from the Government on account of difference in the price of goods supplied by the assessee to permit-holders in the accounting periods relevant for the assessment year 1943-44 onwards. The supplies were made during the war years when the price of iron and steel goods were controlled and the assessee was obliged to sell his goods at prices fixed by the Iron and Steel Controller. However, it seems, the Iron and Steel Controller recognised that before the control orders came into force persons in the trade like the assessee might have purchased raw material at higher rates and by a letter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during which years also similar payments had been received by the assessee. In these years the Tribunal had held : (a) that the amount received was not of a casual nature, and (2) that it was assessable in 1950-51 and 1951-52, the years in which the amount was actually received. Against the order of the Tribunal for those assessment years the assessee took the matter to the High Court under section 66(1), but the only question raised was, whether the amounts received represented income or capital receipts and by its judgment in Income-tax Reference No. 76 of 1958, dated 7th August, 1962, the High Court answered the question against the assessee. The assessee would, therefore, appear to have accepted the position in those years that the rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Commissioner of Income-tax v. A. Gajapathi Naidu. In that case, the Supreme Court approved the view of this court in Commissioner of Income-tax v. Kalicharan Jagannath. In the latter case it was held : " Even though the amount was payable because the assessee had carried out the contract in the accounting year 1945-46 in accordance with the agreement entered into in that year, the mere execution of the agreement and performance of the contract in that year did not entitle the assessee to receive compensation. The right to receive payment of the additional sum arose later when the review application filed by the assessee under the terms of the agreement was accepted." The decision on which reliance was placed having since been overruled, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bserved, the Steel Controller had, at best, in mind certain principles on the basis of which he hoped to give the iron and steel rolling mills some relief for the loss or reduction in profits as a result of the enforcement of controls. The assessee also had correctly understood the position that there was really no agreement or contract much less a debt created in his favour. Otherwise, its system of accounting being mercantile, it would most certainly have raised suitable entries in its accounts. Having tried to raise such a point in the assessment years 1950-51 and 1951-52 and having failed before the Tribunal it accepted the position that there was no accrual in the years when the goods were supplied but only in the year when the claim w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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