2014 (9) TMI 929

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....of Hon'ble Jurisdictional High Court in the case of CIT vs. Hindustan Latex Ltd., (72 DTR 212) (Kerala). 4. On the other hand, the Ld. DR relied on the order of the CIT(A) on this issue. 5. After hearing both the parties, we are of the opinion that a similar issue was considered by this Tribunal in the assessee's own case for the assessment year 2007-08 in I.T.A. No. 169/Coch/2014 vide order dated 25/07/2014 wherein the Tribunal followed the judgment of the Hon'ble Jurisdictional High Court in the case of South Indian Bank vs. CIT in I.T.A. No. 186/2011 vide judgment dated 22-01-2014 with the observation that provision made for leave encashment cannot be allowed in view of the provisions of sec. 43B(f) of the Act. In view ....

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.... account to unexpired interest/discount/commission in the balance sheet. According to the Ld. AR, this amount is not accrued to the assessee and since the assessee can charge interest only on the borrower, such income is apportioned on the basis of period of time. In our opinion, when bills are discounted, the transaction is completed and income is accrued to the assessee and there is no question of postponement of recognition of income. Hence, in our opinion, the lower authorities are justified in treating the amount accrued as income of the assessee. Accordingly, this ground of the assessee is dismissed." 8. Respectfully following the above order of the Tribunal, we are inclined to dismiss this ground in all the three assessment years.....