2009 (11) TMI 560

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....evenue against the order of the Tribunal, dated September 24, 2007 made in I. T. A. Nos. 905 to 909/Mds/2004 relating to the assessment years 1995-96, 1997-98, 1998-99, 1999-2000 and 2000-01.   2. The facts   (i) The assessee is a non-banking finance company. The Assessing Officer, while completing the assessment/reassessment proceedings, found that the assessee was following the m....

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....arried on further appeal by challenging the said order. Confirming the order of the Commissioner (Appeals) the Tribunal rejected the appeal filed by the Revenue. The correctness of the same is now canvassed before us by filing these appeals and formulated the question of law is as under :   "Whether, in the facts and circumstances of the case, the Tribunal was right in holding that interes....

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....e. The fact that the assessee, although generally using the mercantile system of accounting, kept such interest amount in a suspense account and did not bring those amounts to the profit and loss account, showed that the assessee was following a mixed system of accounting by which such interest was included in its income only when it was actually received. The Central Board of Direct Taxes circula....