9911796707
TMI Blog1989 (3) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... erials and/or is sustainable ? (2) Whether the finding of the Tribunal that the amount due from Brahmachari Research Institute (P) Ltd. cannot be said to be irrecoverable unless there is evidence of that the official Liquidator declares the final dividend or writes to the creditor that the full amount is not likely to be recoverable, is based on its failure to take into consideration on the relevant materials and/or evidence and/or by taking into consideration irrelevant materials and/or is perverse ? (3) Whether on the facts and in the circumstances of the case the Tribunal was justified in sustaining the additions of ₹ 41,534 and ₹ 43,240 for the asst. yrs. 1971-72 and 1972-73 respectively being the estimated amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal has also noted that the assessee was maintaining regular books of account on cash basis. The Tribunal came to the conclusion that the assessee had to be assessed on accrual basis. 4. The assessee is an individual. If an individual lends money to a company and receives interest, he has to be assessed in accordance with the system of accounting he follows. The company may maintain its accounts on mercantile basis. From that it does not follow that the individual assessee must be taxed on mercantile basis. If an individual does any business with a company, he cannot be taxed on accrual basis only because the company maintains its accounts on accrual basis. 5. In the instance case, the borrower, Brahmachari Research Institute (P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed but also what accrues to an assessee during a particular year. If the assessee maintains accounts and files his return on cash basis, there is no reason to tax him on accrual basis. The assessee's income cannot be taxed partly on accrual and partly on cash basis at the option of the Department. 8. A point has also been taken that the assessee did not maintain any books of accounts. But that cannot be a ground for taxing the assessee on accrual basis. Unless the assessee is engaged in any business or profession, there is no obligation under the IT Act for the assessee to maintain an account book. Most of the salaried employees and many person who have earnings from interests or dividends do not have regularly maintained books of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether on the facts and in the circumstances of the case the Tribunal was justified in sustaining the additions of ₹ 41,534 and ₹ 43,240 for the asst. yrs. 1971-72 and 1972-73 respectively being the estimated amount of interest as income from undisclosed sources on accrual basis ? Reframed question No. 3 Whether the Tribunal has acted perversely by not taking into consideration that relevant facts and materials and/or by failing to take into consideration the relevant materials and evidence ? 11. The reframed question No. 1 is answered in the negative and in favour of the assessee. The question No. 2 is answered in the following manner : Whether the amount of loan has become irrecoverable or not depen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
