High Court allows mixed accounting system for interest income, expenditure. Tribunal's decision upheld for 1987-88, 1988-89.

The High Court of Calcutta held that the assessee could employ a mixed accounting system for interest income and expenditure. The Tribunal's decision to remove the additions for the assessment years 1987-88 and 1988-89 was upheld. The Court determined that mixed accounts were acceptable and did not impede the precise evaluation of profits. The rulings favored the assessee in both instances.

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The High Court of Calcutta ruled that the assessee could use a mixed accounting system for interest income and expenditure. The Tribunal was correct in deleting the additions for the assessment years 1987-88 and 1988-89. The Court found that mixed accounts were permissible and did not hinder the accurate assessment of profits. Both questions were answered in favor of the assessee.

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