SRINIVASAN J.

The Tirunelveli Motor Bus Service, a private Company, is the assessee. For the assessment year 1950-51 the return of income was for Rs. 14, 555. For failure of the assessee to comply with the requirement of the notice under section 22(4) and section 23(2) of the Act, an assessment was made under section 23(4). The best of judgment assessment of the net income was Rs. 1, 80, 000, which was later reduced on appeal to Rs. 1, 30, 000. In that year, the assessee had debited its accounts with the sum of Rs. 71, 949 in respect of its liability to pay bonus for its employees. The debit did not represent any actual payment. In the account year relevant to the assessment year 1957-58, the claim of the employees to bonus for the account year relevant to the assessment year 1950-51 was settled at Rs. 17, 470, and that was paid to the employees. The difference between the original debit and the actual payment, i.e., Rs. 54, 479 was credited to the profit and loss account of the company In the assessment for the year 1957-58, the Income-tax Officer brought this amount to tax. He purported to do so under section 10(2A) of the Act. He repelled the contention of the assesse