2002 (7) TMI 88

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..... could follow the cash system of accounting in respect of interest income and continue to follow the mercantile system of accounting in respect of interest expenditure? - (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the additions of Rs.44,90,434 and Rs.25,44,968 for the assessment years 1987-88 and 1988-89, respectively?" - both the ques .....

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..... of section 145, the assessee followed in regard to the head of interest, a mercantile system of debiting its own liability to pay interest, and a cash system in regard to showing receipts only for cash interest actually received. As against one case decided by the Madras High Court cited on behalf of the Department, numerous cases were cited by Mr. Murarka appearing for the assessee, showing tha .....

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