9911796707
TMI Blog2019 (9) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... med the order of the AO. Even before us, assessee has not given any explanation why he is following two different methods for receipts and payments. We have gone through the order of the CIT(A) and find no error in it. - Decided against assessee - ITA No. 38 And 39/VIZ/2018 - - - Dated:- 2-8-2019 - SHRI V. DURGA RAO, HON BLE JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, HON BLE ACCOUNTANT MEMBER Assessee by: Shri G.V.N. Hari Advocate. Department By: Shri D.K. Sonawal CIT DR ORDER PER V. DURGA RAO, JUDICIAL MEMBER These appeals by the assessee are directed against the separate orders of Commissioner of Income Tax (Appeals)-12, Hyderabad, both da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of prawn broking and received interest is his primary source of income. The assessee himself has chosen cash system of account for maintenance of his books of account and all the interest receipts are being accounted for on receipt basis. As against this, the assessee is claiming interest payments on mercantile basis, on the pretext that the payees themselves requested the assessee to retain the interest payments. Accordingly, confirmed the order of the Assessing Officer. 4. On being aggrieved, assessee carried the matter in appeal before this Tribunal. 5. Ld. counsel for the assessee has relied on the grounds of appeal, whereas ld.DR supported the orders of the authorities below. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, and disallowed the interest payments claimed on mercantile basis to the tune of ₹ 16,95,733JJhe contention of the appellant's AR, in this regard, is that the interest amounts claimed were in respect of members of the appellant's family, and the amounts were not paid in order to avoid a duplication of transactions. In support of his contention, the appellant's AR has relied upon a number of judgments, including that of the Hon'ble Apex Court in the case of J.B.Boda and Co. P. Ltd v CBDT (1997) 223 ITR 271. The judgment relied upon by the appellant's AR is, however, found to be irrelevant, considering the facts of the present case. The judgment was given by the Hon'ble Apex Court in the context of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther case laws relied upon by the appellant's AR regarding Sec.145(3) are concerned, these also do not help the case of the appellant in any way, since they are all distinguishable on facts. The plea of the appellant not to disturb the existing system of accounting is baseless, in view of the fact that the cash system of accounting has been chosen by the 3ppel'ant him3elf, and there is no reason why the same system should not be followed for interest payments, as it is followed for interest receipts. The addition made by the AO is therefore found to be justified, and all the grounds raised by the appellant on this issue are DISMISSED. 8. We find no reason to interfere with the order passed by the ld. CIT(A). Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
