The Commissioner Of Income Tax – 1, Mumbai v. The Commissioner Of Income Tax – 1, Mumbai

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2447 OF 2009 The Commissioner of Income Tax – 1, Mumbai ..Versus The Commissioner of Income Tax – 1, Mumbai ......Appellant.VersusCampbell Knitwear Limited, Mumbai........Respondent. Mr.Suresh Kumar for the appellant. None for the respondent. CORAM : Dr.D.Y. Chandrachud & J.P. Devadhar, JJ. DATE : 7[th] January, 2010. P.C. : 1.The question before the Tribunal was whether the change in the method of accounting by the assessee had been adopted bona fide. The Tribunal observed that the changed method of accounting was admittedly followed by the assessee in the succeeding years and was accepted by the revenue authorities from year to year in orders passed under Section 143(3) of the Act. The Tribunal noted that the change was adopted because of market trends prevailing in the prices of quota and the entire premia paid for the purchase of quota was debited in addition to the balance brought forward from the previous years. The change in the method of accounting is found to have been followed in succeeding years and has been accepted by the revenue authorities. There is thus a finding of fact that the change was bona fide and has been regularly followed. Consequently, no substantial question of law arises in this appeal. The appeal is hence dismissed. (J.P. Devadhar, J.) (Dr.D.Y. Chandrachud, J.)