firms. On appeal, the AAC held that though under the mercantile system of accounting accrued interest should be treated as income, in the peculiar facts ... contended for the revenue that as the assessee was following the mercantile system of accounting it was bound to account for accrued interest even nothing
stated in the returns that it was maintaining accounts on the mercantile system, and did not dispute its liability to assessment. But, for the assessment ... income, the assessee's accounting is according to the mercantile system especially having regard to the fact that the assessment orders of
the past
mercantile system and adopted a hybrid system from that year ; that though it had not changed the system of accounting from the mercantile system ... system of accounting must disclose the true extent of the income. The systems of accounting are many. The cash system and the mercantile system being
well as the interest on accrual basis. Thus, on the mercantile system of accounting followed by the assessee, the Assessing Authority held that the assessee ... mercantile system of accounting. While in cash system, entries are made on the basis of actual receipts and disbursements, in the mercantile system of accounting
with together. The assessee is a money-lender and followed the mercantile system of accounting. She had advanced loans on mortgages. One such loan ... other circumstances to conclude that, though the assessee had adopted the mercantile system of accounting, the interest on the mortgages was highly illusory and very
Officer was of the view that the respondent/assessee was following mercantile system of accounting and therefore, it was bound to show income arising ... mercantile, this Court held as follows:
The change of method of accounting of overdue charges from the mercantile basis to cash system, method of accounting
controversy that the assessee-company had been following the "mercantile system of accounting".
6. As respects the claim of deduction relatable ... known that the mercantile system of accounting differs substantially from the cash system of book-keeping. Under the cash system, it is only actual cash
Officer, however, held that as the assessee has been following the mercantile system of accounting and as the commission, though subsequently received, pertains ... came to the conclusion that the assessee was regularly following the mercantile system of accounting. Therefore, the commission due to the assessee amounting
finding of the Tribunal bad especially
when the assessee is following mercantile system
of accounting and has received the entire Annual
Maintenance Charges (AMC) amount ... basis” of accounting and
“Mercantile/Accrual basis” of accounting. Relevant portion of the
judgment reads as under :-
“13.The mercantile system of accounting or what
maintained any accounts and had adopted either the method of mercantile system or cash basis the Income-tax Officer will be bound to compute ... difference between the two systems of accountancy at page 577 in the following passage :
"Under this system (the mercantile accountancy system) the net profit
