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TAXAP/19020/2000 2/ 2 ORDER
IN
THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX
APPEAL No. 190 of 2000
=========================================================
ASSTT.
C.I.T. - Appellant(s)
Versus
KAILASH
INVESTMENT PVT. LTD. - Opponent(s)
=========================================================
Appearance
:
MR
MANISH R BHATT instructed
on MRS MAUNA M BHATT for Appellant(s) : 1,
MR RK PATEL for
Opponent(s) :
1,
=========================================================
CORAM
:
HONOURABLE
MR.JUSTICE K.A.PUJ
and
HONOURABLE
MR.JUSTICE BANKIM.N.MEHTA
Date
: 25/08/2008
ORAL
ORDER
(Per
: HONOURABLE MR.JUSTICE K.A.PUJ)
The
revenue has filed this Tax appeal under Section 260A of the
Income-tax Act, 1961 for A.Y. 1988-89. The appeal was admitted on
06.11.2000 in terms of the following substantial question of law :-
Whether,
the Appellate Tribunal is right in law and on facts in holding that
change in the method of accounting from mercantile to cash basis was
bonafide and thereby deleting the addition made on account of
interest chargeable ?
Somewhat
similar question was raised by the revenue in Tax Appeal No. 585 of
1999. The said appeal along with the entire group was by this Court
and the appeal filed by the revenue was dismissed. The question
formulated by this Court was answered in favour of the assessee and
against the revenue. The Court took the view that the Tribunal was
right in holding that the change in the method of accounting made by
the assessee, from mercantile to cash basis was bonafide and
deletion of the addition made on account of interest chargeable was
justified in law.
For
the reasons stated therein, we decide this question in favour of the
assessee and against the revenue. The appeal filed by the revenue,
therefore, stands dismissed without any order as to costs.
[K. A. PUJ, J.] [B. N. MEHTA, J.]
kks
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