1989 (3) TMI 73

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....following question of law under section 256(1) of the Income-tax Act, 1961 ("the Act"), to this court: "Whether, on the facts and in the circumstances of the case and in view of the provisions of the Companies Act, 1956, relating to the accounts of a company, the Tribunal was right in holding that the change by the assessee of its method of accounting from the mercantile system to the cash syst....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....le at Rs. 58,485 though it was not offered for assessment on the ground that it was not received by the assessee as per the cash system of accounting. The assessee preferred an appeal before the Appellate Assistant Commissioner who noticed that the necessary resolutions by the board of directors as well as the general body of the shareholders had taken place before the relevant accounting years an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Tribunal thereafter restored the case to the file of the Income-tax Officer with the direction to allow the change in the method of accounting by imposing necessary conditions in the light of the observations of the Tribunal. The Tribunal was satisfied about the bona fides of the assessee's change in the accounting system. The assessee was agreeable to reasonable conditions being imposed to e....