SASSOON J DAVID AND CO P LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee, Messrs. Sassoon J. David & Co. (Private) Ltd., which was formed in 1922, carried on business in shares and securities and in cotton yarn. 25 per cent. of its shares were held by Sir Percival Victor David and the remaining 75 per cent. were held by a trust of which he was the sole beneficiary.

(2.) SIR Alwyn Ezra, who joined the company in 1925, was appointed a director in 1931 and was in sole charge of the business of the company from 1937 till 1945. He held a general power of attorney from the company as also from SIR Percival who was the only other director of the company and who, at all material times, resided out of India. SIR Alwyn Ezra held one share as a nominee of SIR Percival.

(3.) THE income -tax authorities disallowed the claim both as a bad debt under section 10(2) (xi) and as a loss incidental to business under section 10(1) of the Indian Income -tax Act, 1922. By its judgment dated the 3rd of November, 1962, the Appellate Tribunal took the same view, rejecting in addition the claim under section 10(2) (xv) also.