9911796707
TMI Blog2011 (9) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... eration was filed by it on 01-11-2007. During the course of assessment proceedings, it was noticed by the AO that the excess cash received at the cash counters of the branches of the assessee company was shown as liability. Relying on the stand taken in the assessments for the earlier years on a similar issue, the excess cash of Rs. 3,99,318/- so received was treated by the AO as income of the assessee and the same was added to its total income. On appeal, the learned CIT(Appeals) deleted the said addition made by the AO following the orders of his predecessor as well as the Tribunal in the earlier years giving relief to the assessee on a similar issue wherein the excess cash received by the assessee was treated as its liability. 4. At the time of hearing before us, the learned representatives of both the sides have agreed that this issue is squarely covered in favour of the assessee by the orders of the Tribunal for the earlier years as well as the judgment of Hon'ble Bombay High Court in assessee's own case for assessment years 2002-03, 2004-05 and 2005-06. Copies of the relevant orders are also placed on record before us and a perusal of the same shows that a similar addition m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years consistently allowing relief to the assessee on this issue. Even the Hon'ble Bombay High Court has upheld the decision of the Tribunal giving relief to the assessee on this issue for assessment years 2002-03, 2003-04 and 2004-05 holding that the provision made by the assessee on account of bad and doubtful debts to the extent of 10% of the advances made to F.C.I. through its rural branches was eligible for deduction u/s 36(1)(viia). Respectfully following the said decisions of Hon'ble jurisdictional High Court, we uphold the impugned order of the learned CIT(Appeals) deleting the disallowance made by the AO on this issue and dismiss ground No.2 of Revenue's appeal. 8. In ground No. 3, the Revenue has challenged the action of the learned CIT(Appeals) in deleting the addition of Rs. 11,77,23,000/- made by the AO by way of disallowance of deduction claimed by the assessee on account of amortization of premium paid for securities held under "Held to maturity (HTM) category". 9. The amortized amount of premium paid for securities held under HTM category amounting to Rs. 11.77 crores was claimed by the assessee as deduction in its computation of total income. The same, however, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, income received from commission, exchange and discount including locker rent in advance was being offered to tax by the assessee on receipt basis by following cash system of accounting. In assessment year 2002-03, the assessee changed the said method and offered to tax income from commission, exchange and discount including locker rent on accrual basis. Accordingly such income received in advance was not offered to tax in assessment year 2002-03 and the same was shown on the liability side of balance sheet. This new method adopted by the assessee was subsequently followed in the succeeding years including the year under consideration. In the assessment completed for assessment year 2002-03, the AO rejected the new method adopted by the assessee and brought to tax income from commission, exchange and discount including locker rent received in advance in that year on receipt basis. Following the said stand taken in assessment year 2002-03, the AO brought to tax the similar income received in advance on receipt basis in the subsequent years also including the year under consideration. On appeal, the learned CIT(Appeals) deleted the addition made by the AO on this issue in the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) was hat the change in the method of accounting was bonafide and it has been followed regularly and consistently in the subsequent assessment years. The changed method has been held to be a better method for preparing and presenting financial statements of income of the assessee. The Tribunal has, in appeal, also arrived at a conclusion that the change in the method of accounting is not determined to the interest of the Revenue. The Tribunal affirmed the finding of fact of the Commissioner (Appeals) that the change was bonafide and consistently followed after the year in which it was changed. This is a pure finding of fact of both the Commissioner (Appeals) and by the Tribunal. In the result, on the basis of the material on record, the Revenue has not established before the Court any perversity in the findings of the Tribunal or any illegality on the part of the assessee." As the issue involved in the year under consideration as well as all the material facts relevant thereto are similar to assessment year 2002-03 & 2003-04, we respectfully follow the judgment of Hon'ble Bombay High Court for the said years and uphold the impugned order of the learned CIT(Appeals) giving relief t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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