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The appellant-bank held tax free securities issued by the Indian States of Travancore and Cochin before 1947, and it contended that they were State Government securities. High Court held that the securities were "Government securities" u/s 3(24) of the General Clauses Act and did not include securities of the Government of any Part B State. Supreme Court, allowing the appeal, held that the securities were assessable u/s 8.-010789
Read moreAssessee bank was officially wound up and a liquidator appointed, who informed the ITO bad debts of the bank including the amounts embezzled by the secretary amounted to Rs. 48,50,952. The Tribunal rejected the claim for allowance of bad debts as they were not written off in the books of account of the bank u/s 10(2)(xi). High Court agreed with the Tribunal. Supreme Court held that the bank was partly entitled to claim bad debts. -010756
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