https://www.taxtmi.com/caselaws?id=58116 A taxpayer may adopt a different accounting basis for a distinct class of customers where the change is bona fide, regularly followed, and made before year-end, if it still reflects true profits. The tribunal accepted cash basis treatment for sales to sick textile mills because recovery prospects had become doubtful and the method was confined to that class. It also held that failure to separately allocate common overheads was not fatal where such expenses were not precisely allocable and were insignificant. However, the claim for exclusion of amounts relating to the two mills taken over by the industrial corporation was not justified on the facts, and that addition was upheld. en-us Sat, 28 Jun 1980 00:00:00 +0530 Fri, 17 Dec 2010 13:55:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58116 A taxpayer may adopt a different accounting basis for a distinct class of customers where the change is bona fide, regularly followed, and made before year-end, if it still reflects true profits. The tribunal accepted cash basis treatment for sales to sick textile mills because recovery prospects had become doubtful and the method was confined to that class. It also held that failure to separately allocate common overheads was not fatal where such expenses were not precisely allocable and were insignificant. However, the claim for exclusion of amounts relating to the two mills taken over by the industrial corporation was not justified on the facts, and that addition was upheld. Case-Laws Income Tax Sat, 28 Jun 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58116