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TMI Blog2011 (11) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il by the Tribunal in the impugned order and by relying upon the judgment of the Supreme Court in United Commercial Bank v. Commissioner of Income Tax, (1999) 240 ITR 355, wherein the Supreme Court has evolved the principles in respect of following of the system of accounting whether mercantile or cash, which is as follows: "23. Hence, for the purpose of income tax, whichever method is ado ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at 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 conclusive in the matter. In the present case, the question is slightly different. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance-sheet, if the securities and shares are valued at cost but from that no firm conclusion can be drawn, a taxpayer is free to employ for the purpose of his trade, his own method of keeping accounts, and for that purpose, to value stock-in-trade either at cost or market price. (3) A method of accounting adopted by the taxpayer consistently and regularly cannot be discarded by the depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me, 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 crediting the amount on realization basis and a consistent system is being followed every year. For the reasons aforesaid, we find no reason to interfere with the order passed by the Tribunal. Accordingly, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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