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2018 (5) TMI 1909 - RAJASTHAN HIGH COURTAccrual of income - Transfer of amount of un-reconciled outstanding entries originated up to 31.03.1999 in the inter branch account to the profit and loss account pursuant to RBI instructions - HELD THAT:- The entries which are made are only for the purpose of maintaining system which was lying in the branch office of head-office and by no stretch of imagination, on any accounting principle, this could be treated as income of the assessee once it has been shown reserve fund and as and when accrued it will be treated as income today it will not found favour under the Income Tax Act to be income of the assessee. This is only an assessment of accounts pursuant to the guidelines issued by the Reserve Bank of India. View taken by the Tribunal is required to be reversed & quashed and the question is required to be answered in favour of the assessee holding inasmuch as that the reconciled entries in another branch account cannot be treated as income in the hands of assessee.
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