1991 (9) TMI 61

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....of the mercantile system of accounting followed by the assessee, the Tribunal is right in law and fact in setting aside the assessment made under section 143(3) read with section 143(2)(a) on the basis of the original return filed?" We are concerned with the assessment year 1975-76, for which the accounting period ended on November 13, 1974. The respondents are the members of a Hindu undivided family. Shri Haridas Ramji, the respondent-assessee in one of the cases, is the " karta ". The other members of the Hindu undivided family are the wife and two sons. The family carried on the business of manufacture and sale of a soft drink by name " goldspot " under the name and style of " Calicut Bottling Co. " The business was leased out to a li....

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....5, they themselves had filed returns voluntarily on " due basis ". For the assessment year in question, the assessees realised that they had not received any rental income and filed a revised nil return. The Tribunal found that the assessees had shown the method of accounting as " mercantile " and since the Revenue has accepted the nil returns filed by the assessees for the subsequent years 1976-77 and 1977-78 and did not bring to tax the rental income on " due basis " and since no rental income was received during the previous year relevant to the assessment year 1975-76, in the interest of justice, the revised returns filed by the assessees should be accepted. It was directed that the assessments made under section 143(3) read with sectio....