Change in accounting method: tax department may accept switch from accrual to cash where banking regulators certify validity. Where State Financial Corporations change interest recognition from accrual under the mercantile system to cash basis, the Income-tax Department may accept the cash system for assessment if the Reserve Bank of India and IDBI are satisfied that the change is legal, valid and bona fide, and regulatory certification is taken into account by assessing officers.
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Provisions expressly mentioned in the judgment/order text.
Change in accounting method: tax department may accept switch from accrual to cash where banking regulators certify validity.
Where State Financial Corporations change interest recognition from accrual under the mercantile system to cash basis, the Income-tax Department may accept the cash system for assessment if the Reserve Bank of India and IDBI are satisfied that the change is legal, valid and bona fide, and regulatory certification is taken into account by assessing officers.
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