TMI Blog1964 (10) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... nable to hold that the department and the Tribunal were in error in adopting the conversion table furnished in the Schedule to the Malayan Ordinance. Appeal dismissed. - - - - - Dated:- 26-10-1964 - Judge(s) : K. SUBBA RAO., J. C. SHAH., S. M. SIKRI JUDGMENT The judgment of the court was delivered by SUBBA RAO J.--This appeal by special leave is directed against the order of the High Court of Madras in Tax Case Petition No. 44 of 1961. The appellant is a Hindu undivided family carrying on business with its head office at Pageneri in Ramanathapurani District, Madras State, and also business at Paritpuntar in the Federated Malay States. In respect of the assessment year 1951-52, the appellant showed in the return filed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Japanese occupation of Malaya and in occupation currency, then in circulation, the purchase prices of the same required to be scaled down in accordance with the schedule of rates contained in the Debtor and Creditor (Occupation Period) Ordinance, 1948, passed by the Legislative Council of the Federated Malay States and on that basis the profit and loss in respect of the last 3 items of the property were worked out by him as under : -------------------------------------------------------------------------------------------------------------------------------------------------- S. No. Sale of Purchase price Scaled down Property in occupation value of Sale Profit Loss currency purchase amount price ------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chettiar v. Commissioner of Income-tax dismissed the application. Hence the appeal. Mr. Srinivasan, learned counsel for the appellant, raised before us two points, namely, (1) the conversion table given in the Schedule to the Debtor and Creditor (Occupation Period) Ordinance, 1948, of Malaya hereinafter called the Ordinance, was not intended to provide the rates of conversion for any purpose beyond what the Ordinance was expressly specified to achieve, namely, the determination of the rights and liabilities of debtors and creditors and that the adoption of the conversion rates given in the said Schedule to scale down the cost of properties in question was unwarranted ; (2) the appellant maintained regular accounts for all the years inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uated with fluctuations in the value of a nation's currency. Unless the cost price expressed in Japanese currency is computed in terms of the Malayan currency, it is not possible to arrive at the real profit accrued to the assessee. That is exactly what the Income-tax Officer did and, in our view, that is the only correct basis. It is not correct to say that the Income-tax Officer applied the said Ordinance to ascertain the profit in the present case. The scheme and the details of the Ordinance have already been considered by us in Civil Appeals Nos. 55 of 1962 etc. The Ordinance was enacted for the purpose of scaling down the payments made by debtors to creditors during the occupation period. A Schedule was appended to the Ordinance pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and sold them after the vacation of the enemy occupation in Malayan currency. In order to ascertain the profits resulting from the sale for the purpose of assessment of the assessee for the year 1952-53, the department valued the cost of the properties in Malayan currency in accordance with the Schedule appended to the Ordinance. The assessee contended that the cost price of the properties must be taken at the figure accepted by the department for the purpose of the Government scheme. The High Court held that to ascertain the real profits the department was right in computing the cost price of the properties in Malayan currency in accordance with the Schedule appended to the Ordinance. The reason for the conclusion is stated thus at pag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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