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PETITIONER: THE COMMISSIONER OF INCOME-TAX
Vs.
RESPONDENT: M/s. McMILLAN & CO.
DATE OF JUDGMENT: 16/10/1957
BENCH: DAS, S.K. BENCH: DAS, S.K. BHAGWATI, NATWARLAL H. KAPUR, J.L.
CITATION: 1958 AIR 207 1958 SCR 689
ACT: Income-Tax-Assessment -Acceptance by Income-tax Officer of the assessee’s method of accounting--Power of Appellate Assitant Commissioner in appeal -If can reject such method and adopt another Indian Income-tax Act (XI of 1922), ss. 31, 13 Proviso-Indian Income-tax Rules, R. 33.
HEADNOTE: The respondent assessee, a non-resident company, sold and published books and magazines in various parts of the world. It submitted for the assessment year in question a return in which a fixed percentage of the marked price of all publications sold in India, printed in India or elsewhere, was adopted as the cost of production and this method of accounting was followed in the return. The Income-tax Officer accepting this method, assessed the income at Rs. 82,623. The assessee preferred an appeal on other grounds to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner was of opinion that the true income of the assessee could not be deduced from the method of accounting followed by him and a...