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of <h1>High Court affirms Tribunal's decision on accounting method for accessories & relief under section 80HHC</h1> <h3>M/s Tropical Clothing Co. Pvt. Ltd. Versus Joint Commissioner of Income-tax.</h3> M/s Tropical Clothing Co. Pvt. Ltd. Versus Joint Commissioner of Income-tax. - TMI Issues involved: Change of method of accounting for accessories and computation of relief under section 80HHC.The High Court of Bombay heard the counsel for both parties regarding the main issue of whether the assessee was justified in changing the method of accounting for accessories that remained unused at the end of the previous year. The Income-tax Appellate Tribunal had considered this issue and found that the change of method in writing off the accessories, even if unused, was not bona fide. The Tribunal confirmed the order of the CIT (A) in this regard, stating that the items like buttons, elastic, labels, and threads still held some value and were not obsolete. The Tribunal also upheld the action of the Assessing Officer in reducing 90% of certain miscellaneous income for the purpose of relief under section 80HHC. The Court agreed with the Tribunal's findings, dismissing the appeal as no substantial question of law was involved.In the judgment, it was noted that the change in the method of accounting for unused accessories was not considered bona fide by the Tribunal. The Tribunal found that there was no evidence presented to show what happened to the stock of accessories worth over Rs. 10,00,000. Consequently, the Court agreed with the Tribunal's decision in favor of the Revenue and against the Assessee, as there was no merit in the appeal based on the factual findings presented.The Court affirmed the Tribunal's decision regarding the change in the method of accounting for unused accessories and the computation of relief under section 80HHC. The Tribunal's findings that the accessories still held some value and that the change in accounting method was not bona fide were upheld by the Court, leading to the dismissal of the appeal.
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