TMI Blog1971 (5) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... n the assessee's books. The omission of the assessee to make the entries in its books merely rendered the accounts inaccurate. We are in agreement with the Appellate Tribunal that the absence of entries in the account books cannot deprive the assessee of his right to the deduction. - - - - - Dated:- 20-5-1971 - Judge(s) : R. S. PATHAK., H. N. SETH. JUDGMENT The judgment of the court was delivered by PATHAK J.-The Income-tax Appellate Tribunal has referred the following question under section 66(1) of the Indian Income-tax Act, 1922 : "Whether, on the facts and in the circumstances of the case, the Tribunal rightly held that the interest receipts of Rs. 11,029 and Rs. 21,572 were not assessable in the hands of the assessee family ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Government an amount representing interest at the rate of 6% for the period during which the money had remained with it. That dispute is pending decision in this court. In assessment proceedings for the assessment years 1961-62 and 1962 63, for which the relevant previous years and the years ending on March 31, 1961, and March 31, 1962, the assessee claimed a deduction of Rs. 11,029 and Rs. 21,572 respectively as interest which had accrued during the relevant previous years in the amanat khata. The claim did not find favour with the Income-tax Officer who included the amounts in the total income of the assessee. The assessee appealed to the Appellate Assistant Commissioner but was not ; successful. The Appellate Assistant Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion or otherwise, cause such restitution to be made, as will, so far as may be, place the parties in the position which they would have occupied but for such decree or order or such part thereof as has been varied or reversed ; and, for this purpose, the court may make any orders, including orders for the refund of costs and for the payment of interest, damages, compensation and mesne profits, which are properly consequential on such variation or reversal." An application was made under section 144 by the Government and upon that application the court was in law obliged to make an order directing restitution. There was no discretion in the matter. The court was bound to make an order. The assessee was under a legal obligation to effect r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itution arises automatically, and it arises on the date when the trial court decree is reversed by the appellate court. In the present case, it arose on April 8, 1960. It is urged on behalf of the revenue that the assessee had meanwhile proceeded in appeal to the Supreme Court and, therefore, it must be taken to be disputing its liability. To our mind, that may be true so far as the merits of the dispute in the suit were concerned, but the obligation of the assessee to effect restitution cannot be in doubt. The obligation extended to placing the Government in the same position, as far as possible, in which it would have stood but for the trial court decree. That would extend to the payment of interest, which has been considered by the Privy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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