TMI Blog1928 (1) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... er interest which has not been actually received or realized by the assessees but which has been merely entered in their account bocks for the purpose of proper account keeping can be said to be income, profit or gain, which is liable to assessment of income tax. 2. Whether interest which has not been actually received or realized by the assessees but which is merely acknowledged by the debtors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment of Income Tax. 3. In his statement of the case, the Commissioner points out that the three questions he submitted for decision are all the same. That is true, and the fourth is also exactly the same but they cannot be said even to contain a question of principle. What they come to is this : If interest has fallen due to an assessee, the fact being established in one of four different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner would answer this question in the affirmative. 5. That answer is based on a misreading of Section 13 of the Act, and perhaps a greater misunderstanding of the judgment of the High Court of Madras in the Commissioner of Income Tax Madras v. Subramaniam Chettiyar A.I.R. 1927 Mad. 841. That judgment was cited in this Court as supporting the proposition that Section 13 of the Act means what ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are shown in the accounts as assets, and that not, of the amounts stated, but of so much of them as may be recovered hereafter. 7. Section 13 merely lays down that sums shown in the accounts as received, whether actually or constructively (and there is little real difference) must be treated as income. It would be to stultify the legislature to suggest that it lays down that sums shown as not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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