TMI Blog2011 (11) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... antial questions of law:- "(i) Whether, on the facts and in the circumstances of the case, the Income Tax Tribunal is right in law in rejecting the cash method of accounting adopted by the appellant for arriving at the taxable income, particularly in the light of Section 145 of the Income Tax Act? (ii) Whether on the facts and in the circumstances of the case, the Income Tax Tribunal is right in law in holding that section 209 of the Companies Act will override the provisions of Section 145 of the Income Tax Act, 1961? (iii) Whether, on the facts and in the circumstances of the case, the Income Tax Tribunal is right in law in rejecting the claim for deduction of the entire travelling and training expenses for a sum of Rs.20,35,9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and for filing necessary returns under the Companies Act, the Mercantile basis was adopted ; however, the Income Tax Appellate Tribunal has pointed out that the assessee company has changed its method of accounting from cash to accrual system from Assessment Year 1990-91 onwards to comply with the amendment brought in the Companies Act, 1956. 4. The Income Tax Appellate Tribunal pointed out that the assessee has to compute its income for the purpose of the Income Tax Act on the very same basis of the accounts prepared by it on accrual basis for complying with the provisions of the Companies Act, 1956. Accordingly, the Tribunal justified the Assessing Officer in reopening the impugned assessments and further revising the income on the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the learned counsel for the assessee submitted that the Income Tax Appellate Tribunal erred in law in not upholding the assessee's method of accounting of maintaining books of account on cash basis, hence, the same may be set aside and the Tax Case Appeal may be allowed. 8. In so far as the reliance placed by the learned counsel for the assessee on the decision in the case of Commissioner of Income Tax vs. Bilahari Investment P. Ltd., reported in (2008) 299 ITR 1 (SC) is concerned, the same is not applicable to the facts of the present case since in the cited case, the method of accounting adopted by the assessee was subsequently changed by the Department. However, in the facts of the present case, the finding arrived by the Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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