2016 (11) TMI 1187

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....2. The following substantial questions of law have been raised for consideration, at the instance of the Revenue :- "1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee was entitled to account for only the additional finance charges on a cash basis, while it was otherwise following the mercantile the system of accounting and also accounting for the very same transaction on a mercantile basis under the Company Law? 2. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the assessee could be permitted to follow the mercantile system of accounting for the purpose of Company Law ....

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....(Mad.), it was held that overdue charges can be charged to tax only on cash receipt basis and not on accrual basis. Same view was subscribed to, in a judgment, dated 22.06.2015, rendered in Tax Case Appeal Nos.1230, 1232, 1234 of 2007 and 638, 969 and 970 of 2009. Hence, it is agreed on both sides that question Nos.1 and 2 be answered in favour of the assessee and against the Revenue. 4. So far as question No.4 is concerned, it is not in dispute that it is answered against the assessee by the Division Bench of this Court, in the judgment, dated 22.06.2015, rendered in Tax Case Appeal Nos.1230, 1232, 1234 of 2007 and 638, 969 and 970 of 2009. 5. Now, what remains to be considered is question No.3. 6. Question No.3 deals with chargin....

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.... Trust of India, established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963). (vi) The Infrastructure Development Finance Company Limited, a company formed and registered under this Act. (2) Subject to the provisions of sub-section (1), the Central Government may, by notification in the Official Gazette, specify such other institution as it may think fit to be a public financial institution; Provided that no institution shall be so specified unless - (i) It has been established or constituted by or under any Central Act, or (ii) Not less than fifty-one per cent of the paid-up share capital of such institution is held or controlled by the Central Government." 7. The assessee does not f....