2001 (8) TMI 58

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....t was delivered by R. JAYASIMHA BABU J. -The assessee which is a corporation set up by the State to promote industrial development and investments, adopted the hybrid system of accounting before the close of the accounting year 1980-81, with regard to the interest and rent receivable as it found that large amounts under these two heads had remained unrecovered for a long period of time, and it ....

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....nting considered the income by way of interest pertaining to doubtful loans as not real income in the year in which it accrued, but only when it was realised. Such a mixed system of accounting was held by the court to be in accordance with the accounting practice. Having regard to that decision of the apex court, it cannot be said that it was impermissible for the assessee here to have followed....