TMI Blog1964 (8) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ntroversy is as to the right to make an addition on the facts and in the circumstances of of the case. The addition represents interest not included in the profit and loss account of the assessee in pursuance of a direction from the reserve Bank of India . The interest concerned represented the interest due, but not received, on what are termed the sticky advances of the assessee. The Reserve Bank of India conducted an inspection into the affairs of the assessee under S. 35 of the banking Companies Act, 1949, and as a result of that inspection imposed certain conditions on it. One of those conditions, as can be seen from Annexure A to the Statement of the Case, was that the assessee should not credit to its profit and loss account u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot over-ride the requirements of the Income-tax Act. It has not that statutory binding force . We are in agreement with the conclusion reached by the tribunal. The charge of income-tax under the Indian Income-tax act, 1922, is in respect of the total income of an assessee. S. 4 defines the gamut of total income. S. 2 (15) which purports to define total income merely says that total income means total amount of income, profits and gains referred to in sub-section (1) of S. 4 computed in the manner laid down in the Act. ( 4. ) S . 13 of the Indian Income-tax Act, 1922, provides: income, profits and gains shall be computed, for the purposes of S. 10 and 12, in accordance with the method of accounting regularly employed by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the income is to be computed 'in accordance with the method of accounting regularly employed'. The Income-tax officer may include in the computation of income an amount which does not figure in the accounts but the inclusion of which is required by the assessee's method of accounting; that is to say, the Income tax Officer may, without deviating from the assessee's method, make such adjustments in the profit and loss account as are necessary for giving full and true effect to that method itself. Having adopted a regular method of accounting, the assessee cannot be allowed to change it or depart from it for a particular year or for part of the year or in respect of particular transactions . (5th Edition, Volume 1, Page 665 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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