Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2004 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2004 (1) TMI 19 - HC - Income TaxWhether the hybrid system of accounting followed by the assessee is permissible or not - export handling commission - assessee argued that in respect of the export handling business of the assessee, the expenditures are maintained in mercantile system and receipts are all maintained in cash system in view of uncertainty for recovery from concerned party - contention of the appellant is that the assessee all through is following the said practice of maintaining accounts in respect of export handling business on the mercantile system in respect of the expenditure and on the cash system in respect of its receipts and the law recognises such maintenance of accounts in hybrid system under section 145 of the Income-tax Act, 1961, as it was prevailing at the relevant point of time - We find that such hybrid system is fully permissible in law and the only requirement is that the income should be deducible from such accounting system and in the absence of that the authorities of the Revenue can interfere with. But as there is admittedly no finding that the income cannot be deduced from the accounts maintained by the assessee in the present case, we do not find the interference by the Assessment Officer is permissible.
|