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TMI Blog1982 (4) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... siness in manufacture and sale of refined and other oils. Debit balances in the accounts of partners as at the end of the accounting year on 31st March, 1977 were to the extent of Rs. 4,48,042 while the capital of the firm stood Rs. 1,75,000 and credit balances of partners stand at Rs. 87,980. The firm had claimed interest payments to the extent of Rs. 2,82,258. Since the drawings were for persona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the High Court in T.C.P. No. 199 and 241 of 1977, dt. 9th Feb, 1978. It is claimed that the profit arises only on the determination of the income on the last day of the accounting year. The ld. counsel for the assessee on the other hand pointed out that there is a mistake in the grounds of appeal in the assumption that the High Court has held that average profits should not be taken into cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etermined only at the end of the year. As pointed out by the ld. counsel, Madras High Court has neither approved nor disapproved the principles consistently recognised by the Tribunal, as for example, in ITA No 520/Mds/1973-74, ITA No. 543/Mds/1977-78 dt. 7th July, 1978, ITA No. 1592/Mds/1974-75 and ITA No. 572/Mds/1974-75 (June, 1975), ITA Nos. 1493 and 1494/Mds/1976-77 dt. 19th Aug, 1977. The ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ITO or the working mentioned by the first appellate authority. The first appellate authority left the question of quantification back to the ITO when he directed acceptance of assessee s figure subject to verification. The principle consistently approved by the Tribunal in such circumstances has only been followed by him. Under the circumstances, the departmental appeal fails. 4. The appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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