correct in following the cash system of accounting for interest receivable on sticky loans and the mercantile system of accounting for other receipts ?
(2) Whether ... having been permitted to follow the hybrid system of accounting, i.e., the mercantile system of accounting, in respect of its entire business transactions except
cash system of
accounting or on mercantile system of accounting. Choice of
employing either of the two methods of accounting rests with the
assessee ... income tax act and submitted that cash systems of accounting as
well as the mercantile system of accounting both are recognized for
the purpose
particular system, including cash system, docs not mean that the balance sheet is not prepared in accordance with the system or method of accounting adopted ... case where the accounts are maintained under cash system as distinct from mercantile system of accounting even though such outstanding fees are not charged
accordance with either cash or mercantile system of accounting. The concept of income, therefore, involves the system of accounting for the purpose of inclusion ... accordance with the system of accounting. The concept of assessable income goes with the system of accounting followed by the assessee. Therefore, when the provisions
correct in following cash system of accounting for interest receivable on sticky loans and mercantile system of accounting for other receipts ?
2. Whether ... having been permitted to follow the hybrid system of accounting, i.e., the mercantile system of accounting in respect of its entire business transactions except
system of accounting or mercantile system
of accounting. Plain reading of the provision shows that the assessee could
follow only one system of accounting ... following mercantile system of accounting and in this year system has been
changed from mercantile system of accounting to cash system of accounting.
Though
system of accounting or mercantile
system of accounting. Plain reading of the provision
shows that the assessee could follow only one system of
accounting ... following mercantile
system of accounting and in this year system has been
changed from mercantile system of accounting to cash
system of accounting. Though
system of accounting or mercantile
system of accounting. Plain reading of the provision shows that the
assessee could follow only one system of accounting ... following mercantile system of
accounting and in this year system has been changed from mercantile
system of accounting to cash system of accounting. Though
mercantile system of
accounting without appreciating the fact that the appellant has
system of accounting for determining its
consistently employed cash system
business income ... Income
system followed by the
from other sources as determined under the cash system
appellant and that as per the mercantile system of accounting without
books of accounts prepared as per the Cash Method of
Accounting. However, the Assessing officer (A.O) rejected
the cash method of accounting followed ... said cash system
28
ITA No.2682/Del/2017
GL Litmus Events Pvt. Ltd. vs ACIT
so followed ,the said cash system of accounting followed
