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TMI Blog1938 (4) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee has been assessed to Income Tax in respect of the accrual of interest on this debt it being not clear how the debt can be treated as having been wiped off in 1930 if interest is to be treated as having accrued since that date on the debt . In my statement I am paraphrasing the question put by the Chief Justice and James, J. The facts are that assessment was first of all made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner on the 30th July 1937 in the case stated by him on that date, the case which we have before us in this application. There was further fact which must be mentioned for the purpose of noting the position of the matter. It is a finding by the Commissioner that the assessee prepares his account on the mercantile system. That being so, and there being no return of interest accruing on debts unp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner that by the taking over of the debts of Bhagwandas in 1930 the liability of that person (the debtor) was wiped out, and that the assessee had no further rights with regard thereto. If that correctly states the fact, then the question whether the debt became statute barred in the year of assessment does not arise. It ceased to be a liability in 1930 and became a bad debt from the point o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner at more places than one in the paper-book, that in 1930 the assessee in the interest of himself and the other co-creditors took over the assets of the debtor and released the debtor of all further liability, and the circumstance that the assessee did not in subsequent years include the debt in his returns (such as they were) which he made to the Income Tax authorities are in my opinion c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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