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2011 (7) TMI 693 - HC - Income TaxAddition - Method of Accounting - assessee is an undertaking of the Government of Haryana which is engaged in the business of financing, merchant banking, leasing, etc - accounting policy regularly followed by the assessee was that the bifurcation of interest and principal was done only at the time of final settlement had not been done, the bifurcation could not be made - Commissioner of Income-tax (Appeals) has observed that no reason has been adduced by the Assessing Officer to disturb the accounting system regularly being followed by the assessee - tribunal had concluded that till the final settlement of the accounts was made with the defaulting borrowers, it was difficult to bifurcate the interim payments which had been made by the defaulting borrowers between the principal and the interest amount - Decided in favor of the assessee
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