1989 (3) TMI 73

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..... this court: "Whether, on the facts and in the circumstances of the case and in view of the provisions of the Companies Act, 1956, relating to the accounts of a company, the Tribunal was right in holding that the change by the assessee of its method of accounting from the mercantile system to the cash system was allowable subject to the conditions laid down by the Tribunal ?" The reference rel .....

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..... ed by the assessee as per the cash system of accounting. The assessee preferred an appeal before the Appellate Assistant Commissioner who noticed that the necessary resolutions by the board of directors as well as the general body of the shareholders had taken place before the relevant accounting years and he did not see any reason to hold that the assessee's change in the method of accounting was .....

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..... to allow the change in the method of accounting by imposing necessary conditions in the light of the observations of the Tribunal. The Tribunal was satisfied about the bona fides of the assessee's change in the accounting system. The assessee was agreeable to reasonable conditions being imposed to ensure that there might not be any loss of revenue. We fail to see how it can be said that the T .....

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