Satish Chandra, C.J.

1. THE assessee carries on business in road transport. On 31st March, 1970, it transferred a sum of Rs. 24,869 to its profit and loss account. This sum represented two items : Rs. 8,672, represented credits in the unclaimed wages account and Rs. 16,197, stood to the credit of certain persons who had business dealings with the assessee. THEse persons had not come forward to demand payment of the amounts due to them and consequently their accounts were debited and correspondingly the profit and loss account of the assessee was credited. This was done on 31st March, 1970, which fell in the assessment year 1970-71. THE Income-tax Officer found that the assessee had credited the above amounts to the profit and loss account when they remained unclaimed for a number of years and there was no hope of these being claimed. THE assessee has itself claimed the sums as its income. Hence, the same is liable to tax. He included the sum of Rs. 24,869 to the income of the assessee.

2. THE assessee went up in appeal. THE Appellate Assistant Commissioner held that though the concerned persons had not come forward to demand payments, but in law they could, till three years