TMI Blog1972 (8) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee under section 41(2) - - - - - Dated:- 30-8-1972 - Judge(s) : R. L. GULATI., C. S. P. SINGH. JUDGMENT This is a petition under article 226 of the Constitution. In the previous year, relevant to the assessment year 1954-55, the petitioner purchased an X-Ray machine for Rs. 32,000. He started an X-Ray clinic in the name of M.S. Kackkar's X-Ray Home. Depreciation was allowed to hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to why the credit of Rs. 20,000 in his capital account should not be treated as his income chargeable to tax under section 41(2) of the Income-tax Act, 1961. The petitioner furnished an explanation setting out the circumstances under which the sum of Rs. 20,000 came to be credited in his capital account. The Income-tax Officer, however, still thought that the sum of Rs. 20,000 was chargeable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st, and the written down value shall be chargeable to income-tax as income of the business or profession of the previous year in which the moneys payable for the building, machinery, plant or furniture became due. " There is no doubt that the X-Ray machine was a business asset which was previously being used by the petitioner in his profession. The written down value of the machine being nil, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame would be true about an exchange. For a transaction of exchange to take place, there must be two parties. Here there is no second party. A similar question arose before the Supreme Court in Commissioner of Income-tax v. Hind Construction Ltd. There it was observed : " If a person revalues his goods and shows a higher value for them in his books, he cannot be considered as having sold those go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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