Swaminathan and M. S. Narasimhan, for the respondents , in C.A. Nos.
The respondent in Civil Appeal No.
722 of 1963 .
888 889 of 1962 and 722, 724, 725, 728 to 729 and 732 to 735 of 1963 and for the respondents in C. As.
55 of 1962 .
K. Daphtary, Attorney General, S. V. Gupte, Solicitor General, N. D. Karkhanis, R. H. Dhebar and R. N. Sachthey, for the appellant in C. As.
The Judgment of the Court was delivered by Subba Rao J. These 16 appeals are filed against the Judg ment of the High Court of Judicature at Madras and raise the question of the effect of the Debtor and Creditor Occupation Period Ordinance No.
725 and 728 of 1963 .
55, 888 and 889 of 1962 and 518 to 520, 722, 724, 725, 727 to 729 732 to 735 of 1963.
415 of 1962, 518 to 520 of 1963 .
R.C. No.
Ganapathy Iyer, for the appellants in C. A. Nos.
civil Appeal No.
Appeals from the judgment dated August 19, 1958, of the Madras High Court in Referred Case No.
XLII of 1948 of Malaya, hereinafter called the Ordinance, on the liability of the assessee to pay income tax in respect of pre occupation debts revived thereunder.
The said profits were set off against the losses and the taxes paid by it for the years 1941 42 and 1942 43 were refunded to it.
During the last World War Japan occupied Malaya.
722 t0 735 of 1963 55 of 1962 2.
55 of 1962, 888 to 889 of 1962 and 729, 732 and 735 of 1963 .
724 of 1963 .
The appellant therein is a Hindu undivided family carrying on, inter alia, a money lending business in its own village in Kaula Kubbu Bharu and Parit Buntar in the Federated Malaya States.
During that period both the currencies were in vogue though there was a progressive depreciation of Japanese currency in its relation to Malayan currency.
appellant Respondent Assessment year Claim Issue for determination 1.
518 to 520 of 1963 and for the respondents in C. As.
Any loss still unabsorbed companyld be carried backward to the year 1941 42.
733 to 734 of 1963 .
52, R. C. No.
The Indian nationals, who were carrying on business in Malaya during the period of Japanese occupation, were hit adversely and suffered losses.
During the period of their occupancy i.e., from February 1942 to September 1945, they introduced their own currency in dollars.
It incurred loss for the aforesaid four years of Rs.
53,010 and Rs.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
R. Chaudhuri, for the respondent in C.A. No.
Srinivasan and R. Gopalakrishnan, for the respondent in C.A. Nos.
Hence the appeals.
The Government of India came to their rescue and by Notification dated August 14, 1947, they propounded a scheme to give them relief by allowing them to set off the losses incurred by them during the 5 years relevant to the assessment years 1942 43 to 1946 47 against the profits of the assessment years 1942 43 and 1941 42.
After the Ordinance was passed, in terms of that Ordinance the respondent recovered 6,437 dollars during the previous year ending April 12, 1952 companyresponding to the assessment year 1952 53.
It applied for relief under the special scheme.
On September 5, 1945, the British Government re occupied Malaya and introduced the Malayan currency as legal tender in place of Japanese currency.
In the companyrse of its business it had taken moneys as deposits from various persons before April 12, 1942.
33 of 1955 Comm.
of I.T., Madras O. RM SP.
Any excess tax found to have been paid after recomputing the income of an assessee by carrying his loss backward companyld be refunded to him.
90, 43 and 82, 33, 58 to 60, 64 and 65 of 1955 and 97, 98, 102, 112, 113 and 115 of 1956, respectively.
During the period of occupation it discharged its liability to various creditors but after the publication of the Ordinance it had to pay again to creditors 6,214.58 dollars in the previous year ending April 12, 1950 28,586 dollars for the previous year ending April 12, 1951 and 11,547 dollars for the previous year ending April 12, 1952.
K. Daphtary, Attorney General, S. V. Gupte, Solicitor General, Gopal Singh, R. H. Dhebar and R. N. Sachtliey, for the appellant in C. A. No.
1,33,125.
For the years 1941 42 and 1942 43 it had a profit of Rs.
The aforesaid amounts were claimed by the appellant as deductions respectively for the assessment years 1950 51, 1951 52 and 1952 53.
Civil Appeals Nos.
518 to 520 of 1963 deal with the companyverse case.
V. Viswanatha Sastri, K. Parasaran, K. Rajendra Chaudhuri and K. R. Chaudhuri, for the respondent in C.A. No.
An assessee was permitted to carry the aggregated loss backward and set it off against his profits for the assessment year 1942 43.
35,753 respectively.
The following tabular form at a glance gives the claims of the assessees as creditors or debtors, as the case may be 1.
722 to 735 of 1963 is a firm carrying on business of money lending in Kampar in Federated Malaya State.
