| Case ID |
d091ae35-33c7-4bbc-b696-4b74fb7a2a9e |
| Body |
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| Case Number |
1935 SLD 61 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the entries in the account books of the assessee were not sufficient to rebut the presumption that the remittances of Rs. 16,000 were made out of the profits of the foreign business. The Income Tax Officer was not obliged to accept the entries as conclusive evidence. The case involved intricate details regarding the management of accounts and the nature of the remittances, ultimately deciding against the assessee. The court emphasized the need for proper explanations regarding the account entries, which were deemed misleading and not indicative of actual current transactions. |
| Summary |
In this pivotal case from 1935, the Madras High Court examined the complexities of income tax assessments pertaining to remittances made by an assessee managing a money-lending business outside British India. The case focused on whether the remittances to the headquarters were made from profits, as the assessee claimed. The court scrutinized the entries in the account books, noting that they did not adequately rebut the presumption of profit-based remittances. This decision underscored the importance of transparency in financial records and the obligations of the assessee to provide clear explanations for account discrepancies. The ruling serves as a significant reference point in income tax law, particularly concerning the treatment of foreign business profits and the evidentiary weight of account entries. Keywords such as 'Income-tax Act', 'remittances', 'foreign business', and 'accounting practices' are crucial for understanding the implications of this case. |
| Court |
Madras High Court
|
| Entities Involved |
Not available
|
| Judges |
RAMESAM,
KING
|
| Lawyers |
Not available
|
| Petitioners |
A. V. K. R. M. Kasinathan Chettiar
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1935 SLD 61,
(1935) 3 ITR 89
|
| Other Citations |
Subbiah Iyer, S.A. v. Commissioner of Income-tax [1930] I.L.R. 53 Mad. 510,
Scottish Provident Institution v. Allan [1903] 1903 A.C. 129
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
5
|