that the assessee had valid and bonafide reason for changing the method of accounting in regard to the additional financial charges?
3. Whether ... accounting adopted by the assessee is in accordance with accounting practice..........."
The decision also recognised the hybrid system of maintenance of accounts
bound by the assessee's choice of method regularly employed. The method of accounting followed by the assessee cannot be substituted by the Assessing ... method adopted by the assessee reflected the true income, and as such, the Revenue is not entitled to reject the method of accounting alleging that
that even
under Section 145 of the Act, method of accounting on due
basis is recognised. The assessee is following mercantile
system ... been charged to income-tax for any
earlier previous year.
145. Method of accounting.--
(1) Income chargeable under the head "Profits
and gains
Institute of Chartered Accountant of India. In this case there is a specific finding that the change in accounting method has not been found ... years, there will not be any discrepancy on this account. When the change of accounting method is bona fide and also the same is recognised
change of opinion either with reference to the change in the method of accounting, much less based on the audit opinion, or change ... produce records and show that it had followed such changed accounting method in the subsequent years. In the said decision , the Calcutta High Court also
years, an assessee can change the method of valuation provided such changed method is an accepted principle of accountancy and such changed method is regularly ... based on sound principles of accountancy and the Chartered Accountant has also submitted that the changed method has been regularly followed from this year onwards
return of income and not on
the basis of any definite method of accounting followed in
the books of accounts ... interest on
securities was to be assessed in accordance with the method
of accounting regularly employed by the assessee, and as the
assessee was following
Returns on the real taxable income in accordance with the method of accounting adopted by the assessee. In the circumstances, the Apex Court held that ... method of accounting followed and the preparation of balance sheet in accordance with the requirement of the Banking Regulation Act could not be ignored
production and not for any change to be brought in the method of accounting. Finally, the Assessing Officer rejected the contention and completed the assessment ... investor and not for any change to be brought in the method of accounting.
4. Learned Senior Counsel appearing for the assessee submitted that
held that the assessing authority had not mentioned anything about the method of accounting followed by the assessee. In the circumstances, the Tribunal remanded ... directing the assessing authority to consider the issue as regards the method of accounting employed by the assessee.
5. Aggrieved by the remand order
