TaxTMI 
TaxTMI 
2010 (4) TMI 217
X X X X Extracts X X X X
X X X X Extracts X X X X
....ons of law which have been formulated are as follows:- a) Whether on the facts and in the circumstances of the case, the ITAT was justified in law in deleting the addition made on account of excess cash received at the cash counters of the branches in some years? b) Whether on the facts and in the circumstances of the case, the ITAT was justified in law in directing the AO to ascertain the correct date of payment of PF dues (employees' contribution) and to allow the same if the same has been made within the grace period of five days within the due date? c) Whether on the facts and in the circumstances of the case, the ITAT was justified in law in deleting the addition made on account of interest 'accrued' on Govt. securities? d)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rt of the reasoning has not been demonstrated to suffer from any perversity. Before the Jodhpur Bench, reliance was also placed on the Cash Manual of the assessee which provides that the bank has to make a record of the excess cash, this has to be considered as a liability of the bank and the collection is required to be handed back to the real owner in accordance with the prescribed procedure. In view of the aforesaid, the first question of law does not give rise to any substantial question of law. 3) In so far as the second question is concerned, the Tribunal has remanded the issue to the Assessing Officer for verification of the actual date of payment of the disputed sum. The Tribunal observed that if the payment has been made within ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Rural branches. The view of the Tribunal is consistent with the provisions of Section 36(1)(viia) which refer to "an amount not exceeding ten per cent of the aggregate average advances made by the rural branches of such bank". Counsel appearing on behalf of the Revenue stated that against the order of the Jodhpur Bench of the Rajasthan High Court of 7 March 2008 in ITA 13/2005, a Special Leave Petition was dismissed by the Supreme Court on 16 January 2009. In that view of the matter, no substantial question of law would arise. 6) The last question which has been formulated by the Revenue relates to the accounting system followed by the assessee in respect of income received in advance. This income consists of commission, exchange and dis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m time to time, accounting standards to be followed by any class of assessees or in respect of any class of income. Under sub-section (3) the Assessing Officer may make an assessment under Section 144 where he / she is not satisfied about the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) or accounting standards notified in sub-section (2) have not been regularly followed by the assessee. 8) Under Section 145(2), the Central Government has notified accounting standards which are required to be followed by assessees following the mercantile system of accounting. Accounting standard I relates to disclosure of accounting policies. It provides that (i) All significan....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... financial statements by an assessee. 9) In the present case, the undisputed position before the Court is that (i) The assessee has adopted the mercantile system of accounting since inception; (ii) This system is regularly employed; and (iii) There is no change in the method of accounting on a mercantile basis. 10) The assessee is listed with the Jaipur Stock Exchange. By a communication dated 11 September 2001, the Stock Exchange informed the assessee of a requirement communicated to it by the Securities and Exchange Board of India on 31 August 2001 by which amendments to listing agreements were notified. Clause 50 relates to compliance with accounting standards. SEBI by its communication dated 31 August, 2001 mandated that a new ....