https://www.taxtmi.com/caselaws?id=65299 The Tribunal upheld the CIT(A)'s decision allowing the deduction of a contingent interest liability of Rs. 1,79,26,028, emphasizing the validity of the mercantile system of accounting. However, it disallowed reducing this interest liability from book profits under section 115JB, affirming the AO's inability to challenge audited accounts. The Tribunal dismissed the deduction of expenses under section 14A due to no tax effect and disallowed adding uncredited interest income to book profits under section 115JB. The interest charged under section 234B was deemed consequential, requiring recomputation by the AO. The appeal and cross-objection were partly allowed. en-us Fri, 26 Sep 2008 00:00:00 +0530 Sat, 09 Dec 2023 19:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65299 The Tribunal upheld the CIT(A)'s decision allowing the deduction of a contingent interest liability of Rs. 1,79,26,028, emphasizing the validity of the mercantile system of accounting. However, it disallowed reducing this interest liability from book profits under section 115JB, affirming the AO's inability to challenge audited accounts. The Tribunal dismissed the deduction of expenses under section 14A due to no tax effect and disallowed adding uncredited interest income to book profits under section 115JB. The interest charged under section 234B was deemed consequential, requiring recomputation by the AO. The appeal and cross-objection were partly allowed. Case-Laws Income Tax Fri, 26 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65299