TMI Blog1997 (1) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Sri Tapas Mishra, advocates, for the assessee. This is an application under section 256(2) of the Income-tax Act, 1961, for reference of the following question to this court : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally justified in confirming the order of the Commissioner of Income-tax (Appeals), who deleted the addition of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and loss account the entire AMC received during the year. However, in the return filed, it claimed deduction of Rs. 72.05 lakhs as the amount pertaining to the unexpired period of AMC received. According to the Revenue, the assessee was not entitled to this deduction for the reason that the assessee changed the system of accounting from that of mercantile system to cash system of accounting. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n account of AMC was transferred to the profit and loss account, did not have the effect of changing the system of accounting. No question has been framed by the Revenue questioning the finding of the Tribunal that the assessee had not switched over to the cash system of accounting from the mercantile system. It was held by the apex court in Karnani Properties Ltd. v. CIT [1971] 82 ITR 547 that wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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