2015 (4) TMI 174

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....ntant Member: This appeal filed by the assessee is directed against the order dated 22- 12-2013 passed by the Ld. CIT(A)-II, Kochi for the assessment year 2007-08. 2. The assessee has raised the following grounds: (1) Whether on facts and circumstances of the case, the CIT(A) ought to have followed the decision of the jurisdictional High Court in the case of CIT vs. Hindustan Latex Ltd. and del....

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....find that this issue is fully covered by the judgment of the Hon'ble Kerala High Court in the case of the South Indian Bank Ltd. vs. CIT reported in www.legalcrystal.com/1126570 wherein the Apex Court held that it pertains to the provision made for leave encashment and the disallowance was u/s. 43B(f). Therefore, the said disallowance is justified. In view of this, we are inclined to decide the is....

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....accepted by the revenue. Section 5 is subject to the method of accounting followed by the assessee u/s. 145 of the Act. A method of accounting consistently followed by the assessee cannot be disturbed without any valid reason. There is no requirement either u/s. 5 or under section 145 to offer the income received on cash basis, as the assessee is following mercantile system. The Ld. AR submitted t....

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....ll and the income also accrues to the assessee at that point and accordingly, the action of the Assessing officer is to be confirmed. 10. We have heard the parties and perused the record. In this case, the assessee has transferred an amount of Rs. 27.64 crores towards other liabilities out of the interest received upfront on inland bills and export bills purchased/discounted. Though initially, th....