JUDGMENT

Bennet, J. - This is a reference by the Income Tax Commissioner at the instance of an assessee, a Hindu undivided family. The two questions referred are : (1) Whether the unrealized decree of Rs. 23,269 against Talatuf Husain and others entered in the interest Khata is taxable income for the purpose of Income Tax, while in fact the amount has not been received at all, and whether the assessment of the applicants is correct under the law and (2) Whether the system of keeping the account adopted by the assessee is simply for the purpose of ascertaining the financial state of the family in a particular year or is open to the interpretation put by the Income Tax Officer?

2. The assessment was made according to the Income Tax authorities on the books of the assessee, and it is claimed that the amount of a decree, Rupees 23,012-6-0, which the assessee obtained in the account year and which was on account of the balance of interest on a certain mortgage, should be shown income of the assessee. The books of the assessee showed in the ledger of the mortgagor that there was this decretal amount credited to the mortgagor and also debited. The amount was also shown in what is called the