1978 (1) TMI 140 - HC - Companies Law

Summary

The High Court of Calcutta ruled in a case related to income tax assessment for the year 1966-67. The assessee, a company, changed its accounting method from mercantile basis to cash basis with proper approval. Despite resulting in a loss, the change was found to be genuine and consistent. The Tribunal allowed the assessee to be assessed on the cash basis, which was upheld by the High Court. The decision was based on valid evidence, and the question was answered in favor of the assessee.