circumstances of the case revealed that the assessee has adopted a method of accounting of interest on cash basis applicable to both interest earned ... Tribunal accepted the assessee's right to change the method of accounting but reversed the order of the CIT(A) by stating that
assessee has followed neither the direct cost method nor on cost method. Fiscal duties not taken into account would partake the character of the positive ... items which go into the revenue account and not capital account. The same method of valuation, therefore, is more important; in fact, the only important
method of accounting followed by the assessee and not dependent on the entries made in the books of account. The method of accounting followed ... System of Accounting The company maintains its accounts on accrual basis. Income from construction contracts is accounted based on completed contract method
called for.
Shri Pophale argued that this LIFO method was the most suitable method of accounting as far as the assessee's business ... assessee the
the LIFO method was an accep- compution of a year's profits is
table method of accounting which governed by Section
follows the
percentage completion method of accounting and AS-7 being the
relevant accounting guideline for such method of accounting, the
prescription thereof are required ... following the method of accounting recognized by the
accounting principles to value the inventory. The assessee had followed the
same method of valuing the inventory
Credit in opening and closing stock. The
assessee is following exclusive method of accounting while valuing stock
while the Revenue is contending that only inclusive ... assessee company is following
'exclusive method' also called as 'net method' of accounting consistently
whereby purchases are reduced at inception
purpose of assessing the net wealth.
2. That just as the method of accounting employed by an assessee carrying on a profession affects the ambit ... course of hearing to the following books of account and accounting principles :
1. Accounting Fundamentals by Yorston, Smyth and Brown
crucial system of accounting followed by the assessee. The learned Chartered Accountant further submitted that on the above method followed by the assessee ... either Accrual System of Accounting or Cash System of Accounting arises only when the income is recognized. In the method of billing employed
follow one method or system of accounting for writing his books of accounts and yet another method or system of accounting for the return ... authority of time-honoured books of accountancy or Accounting Standard issued by Institute of Chartered Accountants of India.
17. From the discussion in the foregoing
crucial system of accounting followed by the assessee. The learned Chartered Accountant further submitted that on the above method followed by the assessee ... either Accrual System of Accounting or Cash System of Accounting arises only when the income is recognized. In the method of billing employed
