2001 (8) TMI 36

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..... x Act, 1961, in the absence of account books, should be taken on cash basis, the Appellate Assistant Commissioner took a different view and held that the expenditure is to be computed on accrual basis as the amount which had been borrowed for the purpose of investment in shares from which shares dividend income was derived, had been borrowed from a corporation which followed the mercantile system .....

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..... borrowed from Mercantile Credit Corporation Limited which maintained its account on a mercantile basis, and that it had debited interest for the year in the sum of Rs.88,068 to the account of the assessee. The dividend income earned by the assessee was Rs.15,341. The assessment year being 1982-83, the assessee did not maintain any account books. It was, therefore, open to the Assessing Officer to .....

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