The Special Judge then determines the properties belonging to the landlord and prepares a list of the properties and a list of the debts adjudged to be due by the landlord ranking the same in order of priority and then sends the decrees to the Collector for execution.
The appellant split up the amount of the face value of the bonds into two sums of Rs.
5,00,992/ to the appellant.
2,22,097/9/11 and Rs.
Appeal from the judgment and decree dated July 10, 1962 of the Allahabad High Court in Income tax Reference No.
The Judgment of the Court was delivered by Shah, J. The appellant, a Hindu undivided family, carries on the business of money lending, and maintains its accounts on cash .basis.
V. Viswanath lyer, R. Ganapathy Iyer, S. P. Nayyar for N. Sachthey, for the respondent.
If the Collector has proceeded under s. 27 he has to give to each creditor a bond or bonds bearing interest at the prescribed rate for the amount due to him payable in instalments within a period number exceeding 20 years.
1,54,692/ from the debtor and for the balance the Government of the United Provinces gave to the appealant Encumbered Estates bonds of the face value of Rs.
In submitting the return of his taxable income for the assessment year 1948 49 the appellant .did number disclose any receipt of income from interest due on the loans advanced to Nisar Ahmad Khan.
Against the order passed by the High Court, with certificate, the appellant has appealed to this Court.
3,46,300/ .
3,21,600/ , and disclosed in the return for the ,assessment year 1949 50 as interest received during the year of account the difference between the amount realized by sale of the bonds and the amount due as principal.
The appellant companymenced an action in the Civil Court for a decree for recovery of Rs.
The appellant was duly ,assessed to tax on the income disclosed by him.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
445 of 1959.
If the amount due by the debtor is less than the instalment value of his proprietary rights in land, the Collector is enjoined to direct the landlord to pay with land revenue dues such amount to the Provincial Government in instalments with future interest at a rate determined by the Provincial Government.
The Income tax Officer issued a numberice under S. 34 1 a of the Indian Income tax Act and brought to tax the difference between the face value of the bonds and the amount due as principal as escaped income of the previous year relevant to the assessment year 1948 49.
Pursuant to the order the appellant, received in 1946 Rs.
Bishan Narain and Govind Sarall Singh, for the appellant.
The action was carried to the Judicial Committee of the Privy Council and was ultimately decreed in favour of the appellant.
2,58,000/ due by Nisar Ahmad Khan, Taluqdar of Mohana Estate.
The Special Judge, Sultanpur passed an order for payment of Rs.
Nisar Ahmad Khan then obtained under the U.P. Encumbered Estates Act 25 of 1934 an order applying the provisions of the Act to him.
1,24,202/6/1, and credited the first amount in the books of account towards the balance of principal and the second amount to an account styled Interest Accrued.
The order was companyfirmed by the Appellate Assistant Commissioner and the Income tax Appellate Tribunal.
1395 of 1966.
The amount received in the year 1946 was appropriated by the appellant towards the principal due.
In October 1948 the appellant sold the Encumbered Estates bonds and realized a total sum of Rs.
