JUDGMENT

1. The Income-tax Appellate Tribunal has referred to us two questions of law mentioned in the statement of the case drawn up by it on the 30th of April, 1951. The reference arises out of the appellate order of the Tribunal relating to the assessment for the charge year 1949-50. The assessee had appealed to the Appellate Assistant Commissioner of Income-tax, Lahore, against the assessment order of the Income-tax Officer, Companies Circle, Lahore, dated the 27th of October, 1949. The only item in controversy before the learned Appellate Assistant Commissioner was whether the assessee was liable to pay income-tax on the amount of Rs. 16,200 which represented the amount of interest on securities of the Central Government (of undivided India). This item had been included in the assessment by the Income-tax Officer not because it had been actually received by the assessee but because it had become due and was, therefore, according to the Income-tax Officer, "receivable" within the meaning of section 8 of the Income-tax Act.

2. Learned Appellate Assistant Commissioner allowed the appeal and stated the reasons for his decision thus :-

"As matters stand the interest it payable by Gove