NEW JEHANGIR VAKIL MILLS LIMITED Vs. COMMISSIONER OF INCOME TAX BOMBAY NORTH KUTCH AND SAURASHTRA

JUDGEMENT

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

(2.) THIS appeal with special leave arises out of a judgment and order of the High court of Judicature at Bombay dated 23/09/1955, delivered in Income Tax Reference No. 19 of 1955 made by the Income-tax Appellate tribunal (hereinafter referred to as ' the tribunal ') to the Pligh court under s. 66(1) of the Indian Income-tax Act (XI of 1922)-(hereinafter referred to as ' the Act ') whereby the High court directed the tribunal to submit a supplementary statement of case on the points mentioned therein.

(3.) THE Appellant preferred appeals to the Appellate Assistant Commissioner, Ahmedabad Range, against this order of the Income-tax Officer for the said two assessment years. THE Appellate Assistant Commissioner by his two separate orders confirmed the orders of the Income-tax officer and held that the cheques were not legal tender and were not monies or monies worth as such and that the receipt of cheques at Bhavnagar was not receipt of money. THE receipt of money according to the Appellate,., Assistant Commissioner, took place on actual payments by the drawee Banks and he therefore held that the said amounts were taxable under s. 4(1)(a) of the Act.