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TAXAP/64919/1999 2/ 2 ORDER
IN
THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX
APPEAL No. 649 of 1999
======================================
ASSTT.
COMMISSIONER OF INCOME TAX - Appellant
Versus
KAILASH
INVESTMENT PVT. LTD. - Opponent
======================================
Appearance
:
MR MANISH R BHATT for Appellant(s)
: 1,
MR RK PATEL for Opponent(s) :
1,
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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)
The
revenue has filed this Tax appeal under Section 260A of the
Income-tax Act, 1961 for A.Y. 1986 87. The appeal was admitted
on 06.09.2000 in terms of the following substantial question of law
:-
Whether,
in the particular 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 bonafide and deletion of the addition
made on account of interest chargeable was justified in law ?
Somewhat
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 were 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 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.]
Savariya
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