TMI Blog2007 (4) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... . - I. T. A. Nos. 148, 150 and 151 of 2007 - - - Dated:- 13-4-2007 - S. K. KULSHRESTHA and VINEY MITTAL JJ. JUDGMENT The judgment of the court was delivered by S. K. KULSHRESTHA J .— 1. Ms. Veena Mandlik, counsel for the appellant Revenue. This appeal has been filed under section 260A of the Income-tax Act, 1961 (hereinafter referred to as the Act) against the order dated October 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m that of the mercantile system, the assessee was not entitled to the benefits that had already accrued in the previous years while the assessee was following the mercantile system. 3. The Tribunal repelled the contention of the Revenue that on shifting to the cash system of accounting the assessee was not entitled to what he would have got, had he not changed the system of accounting. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional payment and has to be allowed as an expenditure incurred by the assessee. We are in agreement with learned authorised representative that in case, it is not allowed, then the same may be treated as bad debt/trading loss to arrive at the correct profit of the assessee. Though the amount is recoverable on the settlement or under an agreement and as such it is allowable in both the circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is entitled after the system of accounting is changed. We are fully in agreement with the Tribunal that the change of the system of accounting does not divest the assessee from receiving the benefits which have already accrued to him in the previous years. 6. In this view of the matter, we do not find any merit in this appeal. The appeal is, summarily, dismissed. - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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