1997 (9) TMI 639

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....cts and circumstances of the case, the Tribunal was justified in holding that the system of accounting was mercantile and when the assessee's consistent case was that in respect of the loan advanced to Mls Durga Glass Works the assessee had adopted the cash system" The facts, as found by the Tribunal, are that the assessee showed dividend income of ₹ 1,000 by estimate, but she did not s....

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.... of accounting was followed by her in respect of the interest income from the aforesaid firm during the previous year relevant to the asst. yr. 1973-74. The AAC following the orders relating to the asst. y₹ 1969-70 and 1970-71, affirmed the order of the ITO. On further appeal, the Tribunal held as follows: "As the assessee transferred the above said capital from M/s R.N. Jhunjhunwala....

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....owed for those years to include the interest which accrued on the aforesaid loan, but that contention was rejected and the matter was not further pursued by the assessee in appeal. The question is whether the assessee having followed the mercantile system to include the interest income in the past, can shift to the cash system during the accounting period, relevant to the assessment year in questi....