COMMISSIONER OF WEALTH TAX Vs. VYSYARAJU BADREENARAYANAMOORTHY RAJU

JUDGEMENT

(1.) AT the instance of the Commissioner of Wealth Tax, the Appellate Tribunal has made this reference under Section 27 of the Wealth Tax Act (27 of 1957) referring the following question to us for opinion of the Court:

(2.) ADMITTEDLY the Wealth Tax Act is a sister legislation of the Income-tax Act, and various provisions have been made in it which incorporate the machinery set up under the Income-tax Act for its working. The learned Standing Counsel for the Revenue admits that under the Income-tax Act the case of an assessee maintaining its account on cash basis there is no scope for taxing accrued income before receipt. We are referred to the decision in 66 ITR 378 = (AIR 1968 SC 114) (Raja Mohan Raja Bahadur v. Commr. of Income-tax, U. P.) where their Lordships of the Supreme Court referring to Section 13 of the Income-tax Act of 1922 stated: