2007 (6) TMI 180 - MADRAS HIGH COURT

Method of accounting - Income recognition - Interest accrued on 'non-performing assets' - business of leasing, finance and hire purchase - classification of assets and the Accounting Standard-9 - HELD THAT:- It is clear that the Tribunal had given a factual finding that there is no accrual of income during the year. The issue is covered by the unreported judgment of this court in CIT vs India Equipment Leasing Ltd. [2004 (9) TMI 99 - MADRAS HIGH COURT] as well as the factual finding given by the Tribunal that there is no accrual of income during the year, we are of the view that the order of the Tribunal is in conformity with law.

Learned standing counsel appearing for the Revenue is also unable to give any material or evidence or any compelling reason or brought to our notice any contra judgment, to take a different view. Therefore, we find no error or legal infirmity in the order of the Tribunal so as to warrant interference. Hence, we answer the question in favour of the assessee and against the Revenue. Accordingly, the tax case is dismissed.