KARUMUTHU THIAGARAJA CHETTIAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question on which we are called upon to express our opinion is:

(2.) ON 29th October 1941 the assesses obtained a transfer of certain debentures of Shri Salem Rajendra Mills Ltd. Apparently the Mills were not in a position to pay the interest on the debentures on the due dates, i. e. 1st February and 1st August each year until 1942. ON 2nd February 1942 the assessee received a sum of Rs. 17928 which represented the interest which accrued due prior to the date of his transfer and also a further sum of Rs. 3868 during the year ending 31st March 1943 which also represented interest which accrued due prior to the transfer. The department claimed that these two amounts were assessable to income-tax as income received by the assesses, and the order of the department was confirmed by the Appellate Assistant Commissioner and also by the Tribunal on further appeal.