COMMISSIONER OF INCOME TAX MADURAI Vs. TAMIL NADU STATE TRANSPORT CORPORATION MADURAI DIVISION I LTD MADURAI

JUDGEMENT

(1.) The Revenue is the appellant. This tax case appeal is directed against the order of the Income Tax Appellate Tribunal Madras 'C' Bench dated 30.11.2004 made in ITA No.52/Mds/1997 for the assessment year 1993-1994, and the same was admitted on the following question of law:

(2.) It is not in dispute and also found on verification that even for the subsequent years the assessee has been following only the cash system of accounting and paid tax accordingly and the same has also been accepted by the Department.

(3.) In fact, in respect of an identical issue, for the assessment years 1991-1992 and 1992-1993, the case of the assessee was accepted and it is not known as to whether any appeal has been filed by the Department against the same. In fact, this aspect has been considered in detail by the Tribunal in the impugned order and by relying upon the judgment of the Supreme Court in United Commercial Bank v. Commissioner of Income Tax, 1999 240 ITR 355, wherein the Supreme Court has evolved the principles in respect of following of the system of accounting whether mercantile or cash, which is as follows: