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Commissioner Of Income-Tax, West ... vs Simon Carves Limited on 17 August, 1976

27. As regards the objection of the revenue authorities that under the Companies Act audited accounts approved by the shareholders cannot be subsequently revised, the learned counsel for the assessee contended that charge of income tax is not restricted to computation of income as arising from the final accounts of an assessee. The charge of income tax is on the actual facts of the case of an assessee as found from the scrutiny and enquiry made by the Assessing Officer and other income tax authorities. He reiterated that entries in the books of accounts of an assessee are not conclusive and it is to be seen which of the two final accounts are closer to actual facts of the case and lead to correct computation of income chargeable to tax. Relying on the decision of Hon'ble Supreme Court in the case of CIT v. Simon Carves Ltd. 105 ITR 212 (SC), he contended that the Assessing Officer should have focused his attention on finding out what is the correct amount of business income of the assessee during the financial year instead of bothering about which of the two balance sheets would prevail under the Companie Act. He pointed out that the revised final accounts were submitted by the assessee to the Company Law authorities and there has been no objection from them till today.
Supreme Court of India Cites 9 - Cited by 94 - H R Khanna - Full Document

Commissioner Of Income-Tax vs Birla Gwalior P. Ltd. on 22 April, 1969

Hon'ble Supreme Court in the judgment delivered in the case of Birla Gwalior P. Ltd. (supra) found that its judgment in the case of Shoorji Vallabhadas & Co. (supra), on the other hand, was directly on the point and following the same, it was held by the Hon'ble Supreme Court that it is not hypothetical accrual of income that has got to be taken into consideration but the real accrual of income.
Calcutta High Court Cites 21 - Cited by 104 - S Mukharji - Full Document

Commissioner Of Income-Tax vs Ferozepur Finance (P.) Ltd. on 17 May, 1980

Cancellation of the bookings by some stray buyer merely resulted into the sale of the flat to another buyer. The cancellation of projects resulted into anticipated income not materializing. He contended that the need to revise the earlier accounting entry therefore arose because it was necessary to withdraw recognition of revenue which did not accrue at all. Reliance in this regard was placed by him upon the judgments of Hon'ble Supreme Court in the cases of CIT Vs. Birla Gwalior (P) Ltd. 89 ITR 266 (SC) and CIT Vs. A. Gaj apathy Naidu 53 ITR 114(SC) as well as that of Hon'ble Punjab & Haryana High Court in the case of CIT Vs. Ferozpur Finance (P) Ltd. 124 ITR 619 (P&H) to contend that even under mercantile system of accounting no income can be assessed unless accrued.
Punjab-Haryana High Court Cites 4 - Cited by 51 - Full Document
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