SMT. INDERMANI JATIA vs COMMISSIONER OF INCOME-TAX, U.P., LUCKNOW

The Supreme Court held that under Section 4(1)(a) of the Indian Income-tax Act, 1922, credit entries in the mercantile system of accounts justify the inference that the amounts were actually received as income. The Court ruled that the Income-Tax Authorities correctly included the interest amounts in the taxable income of the assessee, who had maintained accounts showing such receipts. The new point raised by the assessee regarding trading with oneself was not permitted as it was raised for the first time in appeal, thus not allowing for reopening the inquiry.