Ravanna Mana Eyanna & Co., V. The Commissioner Of Income Tax

1915 Present: Jayetileke and Rose JJ.

RAVANNA MANA EYANNA & CO., Appellant, and THE
COMMISSIONER OF INCOME TAX, Respondent.

S. C. No. 85-Appeal against an Assessment of Excess Profits Duty.

Excess Profits Duty-Determination of capital of a business-Claim to deduct bad debts-Meaning of " debts due "-Excess Profits Duty Ordinance, No. 38 of 1941, s. 10 (1) (b).

In computing the capital of a business, bad and doubtful debts for which a reduction has not been claimed or allowed under section 9 (1) (d) of the Income Tax Ordinance are regarded as debts due to the business within the meaning of section 10 (1) (b) of the Excess Profits Duty Ordinance.

A debt, though it is prescribed, can be regarded as still due; the. expression " debts due " should not be read in a limited sense as meaning debts, the payment of which can be enforced by action.

APPEAL against an assessment of Excess Profits Duty, under section 13 of the Excess Profits Duty Ordinance, No. 38 of 1941.

N. Nadarajah, K.C. (with thin N. Kumarasingham), for the assessees,. appellants.-To determine the capital of a business all bad debts should

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