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
over dues, on the ground that the assessee was following
mercantile system of accounting when the assessee had not recognised
the same as revenue ... income of assessee
stating that since the assessee has followed mercantile system of
accounting, any receipts accrued in the nature of revenue must be
recognized
guidelines. The ld AO observed that since the assessee is following
mercantile system of accounting and the guidelines issued by NHB are not
binding ... aforesaid addition is that the appellant was following
accrual/mercantile system of accounting and was accounting the 'fees' as
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guidelines. The ld AO observed that since the assessee is following
mercantile system of accounting and the guidelines issued by NHB are not
binding ... aforesaid addition is that the appellant was following
accrual/mercantile system of accounting and was accounting the 'fees' as
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crores by recording as under:
"5.3. When the mercantile system of accounting being followed by the assessee,
only crystallized liabilities are allowable and unascertained ... lands in question, was an accrued liability
which according to mercantile system of accounting, assessee was entitled to debit
in its books of account
date of balance sheet, as the appellant is following the
mercantile system of accounting. It is stated that there was
no existing relationship between aforesaid ... adverse exchange
fluctuations would be allowable under the mercantile system
of accounting, notwithstanding that the same had not been
actually paid. It is also stated
system for the purpose of accounting of accrued
interest only whereas mercantile system for the purpose of benefit of section
11, thereby having an inconsistent ... that there should be a consistent
method of either cash or mercantile system to be followed?"
2. The assessee is a registered charitable organization
general
dispensation of autonomy of the assessee to follow cash
or mercantile system of accounting prevailing at the
relevant time, in absence of an express ... that allowed complete autonomy to the assessee to follow
the mercantile system. Now a limited change has been
brought about by the insertion of clause
general
dispensation of autonomy of the assessee to follow cash
or mercantile system of accounting prevailing at the
relevant time, in absence of an express ... that allowed complete autonomy to the assessee to follow
the mercantile system. Now a limited change has been
brought about by the insertion of clause
general
dispensation of autonomy of the assessee to follow cash
or mercantile system of accounting prevailing at the
relevant time, in absence of an express ... that allowed complete autonomy to the assessee to follow
the mercantile system. Now a limited change has been
brought about by the insertion of clause
