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2002 (11) TMI 80 - HC - Income Tax"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the final dividend income accrued to the assessee on the date of declaration even though the Reserve Bank of India had not granted permission under the Foreign Exchange Regulation Act, 1973? - Whether, on the facts and in the circumstances of the case, the assessee, a non-resident company, can be assessed on the basis that the accounts are maintained on cash basis?" - question No. 1 is answered in the negative, i.e., in favour of the assessee and against the Department. - On question No. 2, our answer is that the assessee was free to follow either mercantile system of accounting or cash system of accounting subject to the proviso which stated that in cases where income cannot be properly deduced, the Assessing Officer can insist on computation of income upon such basis as the Assessing Officer may determine. Therefore, the assessee, in the present case, was entitled to follow the cash system or mercantile system of accounting subject to the first proviso to section 145(1) as it stood before April 1, 1997.
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