HON’BLE SUPREME COURT · SOURCE-REVIEWED NOTE
Smt. Indermani Jatia v. Commissioner of Income-tax, U.P., Lucknow
Civil Appeals Nos. 278 and 279 of 1956
[1959] Supp. 1 SCR 45 ·
Indian Income-tax Act, 1922: sections 4(1)(a), 14(2)(c), 10(2)(xv)
Sources & disclosures includedDownload original judgment / order
3-judge bench · T. L. Venkatarama Aiyar · P. B. Gajendragadkar · A. K. Sarkar
Assessment years: 1943-44, 1944-45
01 · Facts of the case
The deceased taxpayer’s widow continued assessments involving interest credited at the Khurja head office from capital advanced to the Chistian business in Bahawalpur. The accounts were mercantile and the taxpayer had conceded enforceability and discharge of the interest liability.
02 · Discussion by the Hon’ble Court
The Court corrected the confusion between statutory deemed receipt and actual receipt or treatment as received in these accounts. In light of the concessions and accounting treatment, the credit entries supported taxability. A new self-trading objection was refused because it would require reopening the factual inquiry into branch profits, remittances and tax rates.
03 · Judicial decision
The interest assessment stood. The Court did not determine the merits of the newly raised proposition that a person cannot trade with herself.
04 · Outcome / in whose favour
Both assessee appeals dismissed with costs. The separate disallowance of criminal-litigation expenditure was not contested before the Supreme Court.
05 · AKHB REVIEW POINT
Identify the actual accounting entries and concessions and raise the substantive legal basis early. Do not turn this fact-specific ruling into a general proposition that every mercantile entry constitutes receipt in India.
Source & verification
Download original judgment / order · Open cited source rendition
Complete 18-page Supreme Court Reports scan. Any adjoining report fragments remain in the unchanged original and are excluded from this analysis.
Statutory scope
Historical legislation expressly identified in this note. This is not a decision under the Income-tax Act, 1961 or the Income-tax Act, 2025. Verify enacted wording, commencement, transition and subsequent judicial treatment independently before modern reliance.
Later treatment
Source checked 2026-10-23. Subsequent treatment and present-law applicability have not been comprehensively checked.
Page references identify the supplied PDF; paragraph references identify the judgment unless stated otherwise.
AI disclosure & professional disclaimer
This AKHB research note uses AI assistance and a preserved full-primary review, with refreshed exact original-byte verification. Independent human review is not represented.
General legal and tax research only; not legal or tax advice. Verify the complete judgment, applicable statutory version and subsequent treatment before reliance. AKHB REVIEW POINT is editorial analysis, not the Court’s holding.