1973 (11) TMI 29

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..../s. Juggilal Kamlapat of Kanpur, the Income-tax Appellate Tribunal, Allahabad Bench, has submitted this statement of the case with the following question of law for the opinion of this court : " Whether, on the facts and circumstances of the case, on the finding that there was no evidence on record suggesting that the assessee was showing its income from lease rent on accrual basis, the sum of ....

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....he ground that the rent had accrued to the assessee and as the assessee had been following the mercantile system of accounting, it was a part of its taxable income. The Tribunal dismissed the assessee's appeal on the finding that " the admitted fact is that the assessee had been showing its income from lease rent on accrual basis and had been assessed as such ". Later, the assessee applied under s....

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.... to be assessed on accrual basis, even though the department continued to assess this income on accrual basis. In our opinion the Tribunal has not appreciated the effect of the rectification order passed by it. If an assessee chooses to adopt the cash system of accounting in respect of the income assessable under section 10 or section 12 of the Act, he cannot be assessed on accrual basis. The opti....

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.... immaterial. We are thus clearly of the opinion that the sum of Rs. 8,000 was not liable to be taxed in the assessment year in question. As regards the second limb of the question as to whether this amount can be assessed under section 10(2A) of the Act, it is difficult to understand as to how that provision applies. Section 10(2A) makes a provision for assessment of any loss, expenditure or de....