TaxTMI 
TaxTMI 
2012 (10) TMI 901
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....Tax For respondent : Mr. R. Vijayaraghavan JUDGMENT (Judgment of the Court was delivered by CHITRA VENKATARAMAN,J.) The Revenue is on appeal as against the order of the Income Tax Appellate Tribunal in respect of the assessment year 1989-90, raising the following substantial questions of law: (i) Whether in the facts and circumstances of the case, the Tribunal was right in holding that....
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.... the Officer to rectify the assessment, on the ground that the adjustments made were not in order. The claim made under Section 154 of the assessee was rejected. As against the same, the assessee went on appeal before the Commissioner of Income Tax (Appeals). 3. A reading of the order of the Commissioner of Income Tax (Appeals) shows that the assessee kept certain security deposits and earnest ....
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.... claims relating to the earlier years amounting to Rs.53,93,342/-. Under the mercantile system of accounting, expenses relating to the earlier year was not admissible in the subsequent year. The profits of the earlier year should have credited to the profit and loss account, was also taken into account by the Assessing Officer. Thus the adjustments, as done by the Assessing Authority, were on the ....
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....e and the fact that the claims from the customers were settled after protracted litigation and arbitration, the crediting and debiting of the receipts and expenses as and when the claims settled were reported in the return, which apparently required an investigation into the claims of the assessee. If the relief on the merits of the claim could be considered only through the process of reasoning, ....