1980 (10) TMI 88

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....pur. 2. The assessee is a public limited company acting as a sole selling agent for the products of Swadeshi Cotton Mills Co. Ltd., Kanpur. The assessee company had given a loan during the financial years 1956-57 to 1959-60 to M/s Ram Lal Raja Ram. The company used to credit accrued interest in the amount of the firm at the end of every accounting year, which practice was followed upto 31st Mar....

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....ion also, the IAC (assessment) again added the same amount, namely, Rs. 2,47,048 on the ground that the system of accounting of the assessee was mercantile and assessee was liable to be assessed on accrual basis. According to the IAC, if ultimately the amount was not recovered, the assessee could claim it as deduction. The ld. IAC also pointed out that the amount of loan taken by the firm in quest....

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.... of the Tribunal and the impugned order of the CIT(A). The assessee also placed on the paper book a copy of the order dt. 18th May, 1973 of the Tribunal in ITA Nos. 966 and 967 for asst. yrs. 1965-66, 1966-67 which is the basic order and the copy of order dt. 21st July, 1977 of the Tribunal in ITA No. 372 of 1976-77 for the asst. yr. 1974-75. We have considered the rival submissions. Respectfully ....