Gujarat High Court
Asstt vs Aravli on 28 July, 2008
Author: K.A.Puj
Bench: K.A.Puj
Gujarat High Court Case Information System
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TAXAP/630/1999 2/ 2 ORDER
IN
THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX
APPEAL No. 630 of 1999
======================================
ASSTT.
COMMISSIONER OF INCOME TAX - Appellant
Versus
ARAVLI
INVESTMENT PVT. LTD. - Opponent
======================================
Appearance
:
MR MANISH R BHATT for Appellant(s)
: 1,
MR RK PATEL for Opponent(s) :
1,
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CORAM
:
HONOURABLE
MR.JUSTICE K.A.PUJ
and
HONOURABLE
MR.JUSTICE BANKIM.N.MEHTA
Date
: 28/07/2008
ORAL ORDER
(Per : HONOURABLE MR.JUSTICE K.A.PUJ) The revenue has filed this Tax appeal under Section 260A of the Income-tax Act, 1961 for A.Y. 1990 91. The appeal was admitted on 06.09.2000 in terms of the following substantial question of law :-
Whether, in the particular facts and circumstances of the case, the Appellate Tribunal was right in law and on facts in holding that the change in the method of accounting made by the present assessee, a subsidiary of the holding Company with whom deposits were placed, from mercantile to cash basis was bonafide and deletion of the addition made on account of interest chargeable was justified in law ?
Somewhat similar question was raised by the revenue in Tax Appeal No. 585 of 1999. The said appeal along with the entire group which, inter alia, includes the present tax appeal were heard by this Court and the appeal filed by the revenue was dismissed. The question formulated by this Court was answered in favour of the assessee and against the revenue. The Court took the view that the Tribunal was right in holding that the change in the method of accounting made by the assessee, from mercantile to cash basis was bonafide and deletion of the addition made on account of interest chargeable was justified in law.
For the reasons stated therein, we decide this question in favour of the assessee and against the revenue. The appeal filed by the revenue, therefore, stands dismissed without any order as to costs.
[K. A. PUJ, J.] [B. N. MEHTA, J.] Savariya Top