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TAXAP/726/1999 2/ 2 ORDER
IN
THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX
APPEAL No. 726 of 1999
=========================================================
ASSTT.
COMMISSIONER OF INCOME TAX - Appellant(s)
Versus
TUNGBHADRA
INVESTMENT PVT. LTD - Opponent(s)
=========================================================
Appearance
:
MR
MANISH R 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
: 28/07/2008
ORAL
ORDER
(Per
: HONOURABLE MR.JUSTICE K.A.PUJ)
1. The Revenue has filed
this Tax Appeal under Section 260A of the Income-Tax Act, 1961 for
the assessment year 1989-90. The appeal was admitted on 06.09.2000 in
terms of the following substantial question of law:
?SWhether, in the
peculiar facts and circumstances of the case, the Appellate Tribunal
was right in law and on facts in holding that the change in the
method of accounting made by the present assessee, a subsidiary of
the holding company with whom deposits were placed, from mercantile
to cash basis was bona fide and deletion of the addition made on
account of interest chargeable was justified in law?
2. A similar question was
raised by the Revenue in Tax Appeal No.585 of 1999. The said appeal
along with the entire group which, inter alia, includes the
present Tax appeal was heard 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 bona fide and deletion of the addition made on
account of interest chargeable was justified in law.
3. 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.]
[Bankim
N. Mehta, J.]
/JVSatwara/
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