COMMISSIONE OF INCOME TAX MADRAS O V R SV SR ARUNACHALAM CRETTAR Vs. V MR P FIRM MUAR O R M O M A M CHIDAMBARAM CHETTIAR THE COMMISSIONER OF INCOME TAX MADRAS O RM SP SV FIRM

JUDGEMENT

(1.) THE following Judgment of the court was dellvered by:

(2.) THESE 16 appeals are filed against the Judgment of the High court of Judicature at Madras and raise the question of the effect of the Debtor and Creditor (Occupation Period) Ordinance No. XLII of 1948 of Malaya, hereinafter called the Ordinance, on the liability of the assessee to pay income-tax in respect of pre-occupation debts revived thereunder.

(3.) THE respondent in Civil Appeal No. 722 to 735 of 1963 is a firm carrying on business of money-lending in Kampar in Federated Malaya State. It applied for relief under the special scheme. It incurred loss for the aforesaid four years of Rs. 1,33,125.00. For the years 1941-42 and 1942-43 it had a profit of Rs. 53,010.00 and Rs. 35,753.00 respectively. THE said profits were set off against the losses and the taxes paid by it for the years 1941-42 and 1942-43 were refunded to it. After the Ordinance was passed, in terms of that Ordinance the respondent recovered 6,437 dollars during the previous year ending 12/04/1952 corresponding to the assessment year 1952-53.