Accounting method and true income deduction upheld for the assessee on the record and earlier precedent.

The accounting questions concerned whether the assessee followed the cash system and whether its accounting method allowed true income to be properly deduced from the books. The court followed its earlier decision in the assessee's own case for a prior assessment year and treated the findings on the accounting method as supported by the record. It accepted that the accounts disclosed profits from which true income could be deduced, and answered the material question in favour of the assessee and against the Revenue. The remaining referred questions were left unanswered.

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Issues: Whether the assessee was maintaining the cash system of accounting and whether the method of accounting adopted enabled true income to be properly deduced from the books.

Analysis: The questions referred were substantially covered by an earlier decision in the assessee's own case for a preceding assessment year. Following that view, the Court treated the findings on the assessee's method of accounting as justified on the record and accepted that the accounts disclosed profits from which the true income could be deduced.

Conclusion: The question was answered in the affirmative in favour of the assessee and against the Revenue.

Final Conclusion: The reference was disposed of by answering the material accounting questions in favour of the assessee, while the remaining questions were left unanswered.

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