COMMISSIONER OF INCOME TAX Vs. USHA RANJAN BHADRA

JUDGEMENT

(1.) ON an application under Section 66(2) of the Indian I.T. Act, 1922, the Income-tax Appellate Tribunal, Gauhati Bench, Gauhati, was directed to draw up a statement of the case on the following question :

(2.) THE assessee owns a rice mill and in the year 1946 he had mortgaged his immovable property including the mill machinery in favour of M/s. Tripura Modern Bank Ltd. with a view to obtain financial assistance from the bank. From time to time that bank financed the assessee. Some time after, the bank was closed down and an official liquidator was appointed. THE High Court of Calcutta made an order against the assessee on September 3, 1957, for the payment of a sum of Rs. 3,76,914-11-3 along with further interest @ 6% per annum till the date of realisation and costs on the basis of the dues outstanding from the assessee to the said bank. This amount included a sum of Rs. 2 lakhs which was the capital amount and the remaining amount represented interest. THE official liquidator by a letter dated November 19, 1957, required the assessee to pay this amount within 15 days from the date of that letter. It appears that the assessee did not pay the amount and thereafter the official liquidator approached the High Court and the High Court of Calcutta by an order dated October 10, 1960, granted leave to the official liquidator to accept an amount of Rs. 1,65,000 "in full settlement of the claim, interest and costs against the debtor."

(3.) LET us note Section 10(2A) of the Indian I.T. Act, 1922, which reads as follows: