TMI Blog2011 (11) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... n income or not, but, in every case, it must be applied with care and within their recognized limits.- Decided against the Revenue. - T.C.(A).No.334 of 2005 - - - Dated:- 28-11-2011 - MR.JUSTICE P.JYOTHIMANI, MR.JUSTICE P.P.S.JANARTHANA RAJA, JJ. For Appellant : Mr.J.Naresh Kumar Standing Counsel For Respondent : Mr.J.Balachander for M/s.S.Sridhar J U D G M E N T P.JYOTHIMANI, J. The Revenue is the appellant. This tax case appeal is directed against the order of the Income Tax Appellate Tribunal Madras 'C' Bench dated 30.11.2004 made in ITA No.52/Mds/1997 for the assessment year 1993-1994, and the same was admitted on the following question of law: "Whether in the facts and circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and proper income while submitting the income tax return. In Kedarnath Jute Mfg. Co. Ltd. v. CIT, (1971) 82 ITR 363, this Court has negatived the contention that: '.... if an assessee under misapprehension or mistake fails to make an entry into the books of account and although, under the law, a deduction must be allowed by the Income Tax Officer, assessee will lose the right of claiming or will be debarred from being allowed that deduction.' The Court held that whether the assessee is entitled to the particular deduction or not will depend upon the provision of law relating thereto and not on the view which the assessee might take of his rights nor can the existence or absence of entries in the books of account be decisive or conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every case, it must be applied with care and within their recognised limits. (5) Whether the income has really accrued or arisen to the assessee must be judged in the light of the reality of the situation. (6) Under Section 145 of the Act, in a case where accounts are correct and complete but the method employed is such that in the opinion of the Income Tax Officer, the income cannot be properly deduced therefrom, the computation shall be made in such manner and on such basis as the Income Tax Officer may determine.", and by following the same, the Tribunal, in our view correctly, has held against the Revenue. The Tribunal has also given reasons for arriving at such conclusion and found that the assessee is in the practice of credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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