https://www.taxtmi.com/caselaws?id=210460 A consistently adopted cash basis for reimbursement claims may be accepted for income-tax purposes even where the assessee otherwise follows the mercantile system, if it reflects real income and has been accepted by the Department in later years. The Tribunal applied the principle that a regular method of accounting cannot be rejected merely because another method might be preferable, and noted that substitution under Section 145 is warranted only where the accounts, though correct and complete, do not permit proper computation of income. On that reasoning, the cash basis for reimbursement claims was upheld and the Revenue's contention failed. en-us Mon, 28 Nov 2011 00:00:00 +0530 Sun, 12 Feb 2012 14:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=210460 A consistently adopted cash basis for reimbursement claims may be accepted for income-tax purposes even where the assessee otherwise follows the mercantile system, if it reflects real income and has been accepted by the Department in later years. The Tribunal applied the principle that a regular method of accounting cannot be rejected merely because another method might be preferable, and noted that substitution under Section 145 is warranted only where the accounts, though correct and complete, do not permit proper computation of income. On that reasoning, the cash basis for reimbursement claims was upheld and the Revenue's contention failed. Case-Laws Income Tax Mon, 28 Nov 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=210460