1982 (12) TMI 24

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....at view allowing the deduction of Rs. 2,06,452 claimed by the assessee? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the cash payments on account of reimbursement of medical expenses of the employees could not be included in the value of benefit, amenity or perquisite for the purpose of disallowance in excess of the limits laid down under section 40(c)(iii) or section 40(a)(v) of the Income-tax Act, 1961 ? " So far as the second question is concerned, the point is concluded by the judgment of this court in the case of Indian Leaf Tobacco Development Co. Ltd. v. CIT [1982] 137 ITR 827 (Cal). Following that decision the second question is answered in the affirmative ....

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.... method of accounting was to show this item under the head " Capital account " year after year and, therefore, there was really no change in the system of accounting followed by the assessee. It was secondly argued that the system followed for a number of years cannot be changed except for strong reasons and there was no strong reason present in this particular case. We are unable to accept these arguments. In the books of account of the assessee the shares are shown as capital assets and as such are not valued as closing stock at the end of the year. It is the common case of the assessee and the Department that these shares should be treated as on revenue account and, therefore, in spite of these shares being shown in the books of the a....