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2013 (11) TMI 1053 - GUJARAT HIGH COURTChange in accounting system – Loss incurred - Held that:- The change in method of accounting was bona fide and with the compliance of the Accounting Standard – AS 9 – Under new system the income is required to be accounted for or offered for taxation in the year in which it is accrued to the assessee - This method of account is more accurate, scientific and as per the various statutory requirements - The change cannot be rejected on the ground that it has resulted into claiming more expenditure during the year under consideration. Rejection of books - The assessing officer has not pin-pointed out any defects in the books of accounts of the Appellant - The assessing officer has not established that profit cannot be deduced because of method of accounting adopted by the appellant - The new accounting system followed by the assessee is permissible under the law - When the assessee changed the accounting system and started following the new accounting system which is permissible under the law – It is not justified to reject the change in the method of accounting just because it resulted in loss – Decided against Revenue.
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